Cathay Pacific 1998 Annual Report Download - page 22

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Financial Review
20 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
•Revenue passenger kilometres increased by 4.4% against a 5.6% increase in available seat
kilometres which resulted in a deterioration in passenger load factor from 68.2% to 67.5%.
•Passenger yield continued to be under pressure and dropped by 18.9% to HK45.2¢ primarily as a
result of weak currencies, tough competition, the reduction in “front-end” passengers and the
increase in “sixth freedom” business.
•Cathay Pacific’s cargo and mail turnover, as a result of the tough competition and the problems at
HACTL’s SuperTerminal One, dropped by 12.8%. AHK Air Hong Kong’s turnover increased by 3.3%.
•Cathay Pacific’s cargo and mail load factor reduced by 7.7 percentage points to 65.2% as cargo
and mail tonne kilometres dropped by 7.8% against an increase of 3.1% in cargo and mail
capacity. AHK Air Hong Kong’s load factor decreased by 3.8 percentage points to 74.9%.
•At the Cathay Pacific company level, the decrease in turnover by HK$4,165 million was a result of:
HK$M
4.4% capacity growth 1,408
0.7%pt. decrease in passenger load factor (256)
7.7%pt. decrease in cargo and mail load factor (717)
18.9% decrease in passenger yield (4,266)
5.6% decrease in cargo and mail yield (334)
(4,165)
•The weak traffic market in 1998 resulted in the
Company’s revenue load factor falling by 2.4
percentage points to 67.1%.
•Cathay Pacific’s traffic turnover sensitivity is set out
below:
Annual effects of:
HK$M
One percentage point change in passenger load factor at 1998 passenger yield 273
One percentage point change in cargo and mail load factor at 1998 cargo and mail yield 88
One Hong Kong cent change in passenger yield per revenue passenger kilometre at
1998 passenger load factor 407
One Hong Kong cent change in cargo and mail yield per cargo and mail tonne
kilometre at 1998 cargo and mail load factor 33
Revenue load factor
%
9897969594
0
20
40
60
80