Cathay Pacific 1998 Annual Report Download - page 43

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41
CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Notes to the Accounts – Profit and Loss Account
1. Turnover
Turnover comprises revenue from transportation services, airline catering and other services provided to third
parties. Turnover is analysed as follows:
1998 1997
HK$M HK$M
Passenger services 18,532 21,851
Cargo services 7,040 7,782
Catering and other services 1,123 1,014
Turnover 26,695 30,647
2. Operating profit
1998 1997
HK$M HK$M
Operating profit has been arrived at after charging/(crediting):
Depreciation of fixed assets:
Leased 1,660 1,456
Owned 1,225 955
Operating lease rentals:
Land and buildings 555 624
Aircraft and related equipment 205 219
Others 39 93
Exchange differences:
Realised on long-term loans and leasing obligations 64 275
Others 24 176
Auditors’ remuneration 66
Income from unlisted investments (28) (43)
3. Exceptional items
1998 1997
HK$M HK$M
The exceptional items consist of the following:
Net profit arising from the sale of investments (185) –
Provision for severance payments arising from staff retrenchments 217 347
Provision for the impairment in value of the B747-200 and B747-300 aircraft and
related equipment arising from decisions to remove them from service 607 –
Provision to write down the B747-200 and B747-300 aircraft spare parts
to net realisable value 230 –
869 347
The net profit arising from the sale of investments mainly relates to the sale of a 4.5% shareholding in a
company operating a computerised reservation system business in Asia. The Group still maintains an 8.4%
shareholding in this business.