Cathay Pacific Profits Rise 204% On Strong China Demand
Hong Kong’s Cathay Pacific airways posted a 204% increase in profits in 2013 to $2.6bn Hong Kong dollars ($335m, £201m).The airline said the boost in profits was largely attributed to an increase in leisure and business travel to the Pearl River Delta in southern China.
However, Cathay Pacific warned that low cost carriers were eating into profits.
Shares in the firm declined, as profits were less than analysts had been expecting.
“The operating environment remained challenging throughout 2013, for [Cathay Pacific] and the aviation industry as a whole. It was therefore encouraging to see an improvement in our overall performance,” said chairman Christopher Pratt in a statement.
The airline carried 29.9 million passengers in 2013 – an increase of 3.3% from a year earlier.
However, it said its cargo business continues to be weak after a slowdown in 2011.
Cathay Pacific is one of the world’s largest carriers of air cargo.
“Despite current adverse market conditions, we remain confident in Hong Kong’s future as an air cargo centre,” Cathay said in its earnings report.
Ivan Chu is set to take over as chief executive of the airline this month.