Cathay Pacific Group has announced the results obtained during the first six months of 2019. The airline has a turnover of 53,547 million Hong Kong dollars (HK $), representing an increase of 0.9% over the same period last year. Cathay Pacific continues in this way with solid progress thanks to the positive results of both the main airline and group business. Cathay Pacific Group has reported an attributable gain of 1,347 million HK $ during the first half of the year, an increase of 1.31% compared to the losses of HK $ 263 million in the first half of 2018. The earnings have experienced a strong growth achieved per share 34.2 HK cents, 40.9% more.
John Slosar, president of Cathay Pacific, said: “We are in the last phase of our three-year transformation program, designed to make our business more efficient, agile and able to compete more effectively. We continue working on this project and, as our return to profitability in 2018 demonstrates, we are moving in the right direction. The positive results continued during the first half of 2019, although the operating environment of our airlines has been affected as geopolitical and commercial tensions have intensified. ”
In this context, the revenues derived from passenger transport were satisfactory but the cargo business was weaker. Revenue from passenger services increased 5.6%, reaching 37,449 million HK $.
This increase is due to a 6.7% increase in capacity and new routes and frequencies introduced, thus transported passengers increased 4.4% to 18.3 million passengers. However, revenues from cargo services decreased 11.4% to 11.498 million HK $, despite the fact that cargo capacity increased by 1.1% due to the additional space in the hold of the last acquired aircraft , consequence of a more unstable world trade caused in part by trade tensions between the United States and China.
In Europe, Cathay Pacific continues to consolidate its presence on the continent. The airline is committed to increasing the frequency of its routes in Madrid or Paris (among others) and to implement airplanes with greater capacity, such as the A350-1000. Also in the first six months of the year, it extended its code-sharing agreement with the Lufthansa group to include three more routes in Europe to Frankfurt, Munich and Zurich. In addition, Cathay Pacific has announced during this semester the acquisition of the low cost airline Hong Kong Express for a total of 4,930 million Hong Kong dollars.
With this transaction, the company hopes to maximize synergies within the group, offer greater possibilities to its customers and strengthen Hong Kong’s position as the largest international aviation center in Asia, all with the consequent increase in its results.
Cathay Pacific Group continues with a positive growth trend and hopes to consolidate the favorable results in the second half of the year, from the company assure that “although we are cautious about the growth prospects for the rest of 2019, we trust the future of our business and Hong Kong ”. The airline thus advocates concentrating its efforts to become the best alternative for passengers and shareholders.