Cathay Pacific profit surges but falls short of estimates
Net profit soars in the first six months but still falls short of airline and analyst expectations
First-half net profit at Cathay Pacific Airways rose to HK$347 million from HK$24 million in the same period last year but still fell short of the company's and analysts' expectations.
But results in the second half were expected to be "much better" because of seasonal factors and signs of pickup in cargo load, Slosar said.
Shares of Cathay, which includes Cathay Pacific and Dragonair, dropped 1.74 per cent to end yesterday at HK$14.68. In contrast, the benchmark Hang Seng Index finished at its highest in more than 31/2 years by rising 0.81 per cent to 24,890.34 points.
The company reported yesterday that yield, the most important measure of an airline's profitability, slipped 3.5 per cent in the passenger business to 66.6 HK cents and dropped 6.9 per cent for cargo and mail.
The profit margin improved by 0.6 percentage point to 0.7 per cent.
The company blamed industrywide challenges such as high fuel prices and weak cargo demand as well as losses from Air China, in which it holds a 20 per cent stake. The mainland's flag carrier is due to post its results on August 26.