Cathay expands fleet with 27 new planes after record-breaking year

Cathay Pacific Airways splashed out yesterday to boost its fleet with deals for another 27 aircraft in a move that came as the airline reported a record-breaking 2010 with all-time highs for net profit, turnover, passengers and cargo.

The carrier's chairman, Christopher Pratt, said last year's profit of HK$14 billion meant Cathay Pacific was 'probably the most profitable airline' in the world.

The figures, which included a HK$2.5 billion profit contribution from Air China for the year to September 30, 2010 and HK$3 billion in gains from disposals, also buoyed the carrier's share price, which climbed 4.5 per cent to close at HK$18.94 yesterday. That compared to a 0.4 per cent gain in the Hang Seng Index.

Cathay Pacific had a 19.3 per cent stake in Air China but this was diluted to 18.3 per cent after the mainland airline issued new shares. Hong Kong's home carrier has bought further shares to take its stake to 18.7 per cent. Pratt did not rule out more share purchases. 'If we see value we continue the move we have already started to buy shares,' he said.

Analysts said the results, which included a 33.7 per cent rise in turnover to HK$89.5 billion, were higher than most forecasts although Goldman Sachs had tipped profit of HK$14.5 billion on revenue of HK$92 billion.

Pratt said the aircraft order comprised 15 Airbus A330-300s, 10 Boeing 777-300ERs and a lease deal for two Airbus A350-900s to be delivered by 2016. The 27 new planes have a list price of about HK$51 billion. The latest acquisitions came after the airline placed its largest ever order in September for 30 Airbus A350-900s and six Boeing 777-300ERs.

Cathay Pacific now has firm orders for 91 new aircraft, which Pratt said had a total list price of HK$185 billion, although the airline has received a considerable discount.