CATHAY PACIFIC ANNOUNCES 2002 INTERIM RESULTS

7 August 2002

Cathay Pacific Group today announced a profit attributable to shareholders of HK$1,412 million during the first six months of 2002. Turnover was HK$15,511 million, a 6.3% increase over the second half of 2001 when the Group made a loss of HK$662 million.

The result reflected a steady recovery in market conditions. With more people travelling, the airline brought previously grounded aircraft back into service and restored services that were temporarily suspended following the terrorist attacks in the United States. The airline also added a new fifth daily flight to Tokyo and four more weekly flights to London, which is now served by 18 flights each week. 

Capacity will be increased further with the delivery later this year of the new A340-600 long-range aircraft. The airline has also ordered six new regional aircraft, which will arrive from the end of 2003.

Total load factors in the first half were high yet demand for business travel remained relatively weak. As a result, passenger yield, or the average earned from each passenger for every kilometre flown, declined to HK45.4 cents from HK47.3 cents in the same period of 2001.

Cargo services rebounded in the first half as a revival in the US manufacturing sector stimulated strong growth in exports from Hong Kong. Weaker cargo yields were compensated by an increase in tonnage. 

Following Cathay Pacific's acquisition of the outstanding stake in AHK Air Hong Kong Limited (AHK) to make it a wholly owned subsidiary, operations between the two carriers have been integrated to allow Cathay Pacific to deploy its longer-range B747-400 freighters more effectively and AHK to develop its network in Asia. This month, Cathay Pacific launched a new freighter service to Milan.

Cathay Pacific Chairman Mr James Hughes-Hallett said: "Subject to unforeseen circumstances we anticipate continued demand in the coming months and an improved result in the traditionally stronger second half. Orders for new aircraft and our commitment to create about 1,300 new Hong Kong based jobs underline our confidence in the future of the airline and of Hong Kong."