Cathay Earnings Soar 72

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Earnings Analysis:

Cathay Earnings Soar 72%

Author: 123jump.com Staff
123jump.com
Last Update: 10:40 PM EST March 05 2008

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Hong Kong’s largest airline reported 2007 net profit increases 72% to HK$7.02 billion helped by a weak dollar and rising passenger demand. Together with subsidiary, Dragonair, the carrier carried 23.35 million passengers last year. Cathay Pacific warned of a tough 2008 on rising fuel costs and increased competition.

Outlook and Share Price

Cathay Pacific predicts a tough 2008, as a result of higher fuel prices and increased competition, and generally, as a result of the slow down in the world economy. ""Any substantial slowdown in world economic activity would pose risks to anticipated passenger and cargo volumes and revenue,"" Chairman Christopher Pratt told reporters Wednesday.

In the three months to December, Singapore Airlines raised profit by 51% on stronger passenger demand.

At the close of trade in Hong Kong Wednesday, shares of Cathay Pacific gained 0.7% to HK$16.32.

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