Cathay Pacific net profit down 83% in 2012

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Cathay Pacific has posted a net profit of Hong Kong dollars (HK$) 916 million ($118 million), down by 83% year on year in 2012.

The group's turnover for the year increased by 1% to HK$99 billion. Passenger services turnover grew by 3.5% to HK$70 billion, while the turnover for cargo services fell by 5.5% to HK$24.6 billion. Cathay and its regional unit Dragonair carried a total of 29 million passengers in 2012, up by 5% from a year earlier.

In 2012, the group's core business was adversely affected by the high price of jet fuel, pressure on passenger yields and weak air cargo demand. The group's share of profits from its associates, including Air China, also showed a marked decline.

The group's fuel costs, without taking fuel hedging into consideration, increased by 0.8% compared to 2011. Fuel accounted for 41% of total operating costs, a decrease of 0.4 percentage points from the previous year.

Operating profit for the year declined by 68% to HK$1.79 billion, while its operating expenses rose by 5% to HK$97.6 billion.

Cathay Pacific chairman Christopher Pratt says: "Our financial position remains strong and we will continue to invest in the future. Our core strengths remain the same as ever - a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong. These will help to ensure the success of the Cathay Pacific Group in the long term."