HONG KONG, Aug 5 — Hong Kong carrier Cathay Pacific said today that net profit surged 71 per cent in the first half of the year, as demand from passengers avoiding the Middle East offset a near doubling of fuel costs caused by the Iran war.
“Our result was positively impacted by ongoing underlying demand for Cathay Pacific and Cathay Cargo, improved performance from HK Express, and stronger contributions from associates,” the chair Guy Bradley said in its earnings report.
The airline reported net profit of HK$6.2 billion (US$795 million) in the first six months of the year, while revenue increased 25.3 per cent on-year to HK$68 billion.
Passenger revenue increased 26.3 per cent to HK$43.2 billion, driven by strong travel demand and “amplified by increased transit traffic through Hong Kong as travellers looked to other hubs due to the Middle East situation in the second quarter”, the carrier said.
“Having got off to a strong start in the first quarter, we faced a more challenging second quarter due to the situation in the Middle East and the resulting significant increase in jet fuel prices,” Bradley said, adding that fuel costs nearly doubled from the first quarter to the second.
The airline has raised fuel surcharges multiple times since the war broke out in February.
“That we were able to achieve our first-half performance despite these circumstances is testament to the resilience we have built into our business in recent years,” Bradley said. — AFP
