Cathay Pacific 2007 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2007 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Notes to the Accounts
Profit and Loss Account
1. Turnover
Turnover comprises revenue from transportation services, airline catering, recoveries and other services provided to
third parties.
2. Segment information
(a) Primary reporting by business segment
Airline business Non-airline business Unallocated Total
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
Revenue
Sales to external
customers 73,881 59,401 1,477 1,382 75,358 60,783
Inter-segment sales 24 –1,209 965 1,233 965
Segment revenue 73,905 59,401 2,686 2,347 76,591 61,748
Segment results 7,471 4,981 268 237 7,739 5,218
Net finance charges (803)(477) 16 12 (787) (465)
6,668 4,504 284 249 6,952 4,753
Share of profits of
associates 1,057 301 1,057 301
Profit before tax 8,009 5,054
Taxation (752)(735) (47) (47) (799) (782)
Profit for the year 7,210 4,272
Assets and liabilities
Segment assets 105,869 92,066 1,727 1,839 107,596 93,905
Investments in associates 10,054 8,826 10,054 8,826
Total assets 105,869 92,066 1,727 1,839 10,054 8,826 117,650 102,731
Segment liabilities 66,513 56,702 410 491 66,923 57,193
Net assets 50,727 45,538
Other segment
information
Depreciation and
amortisation 4,681 4,120 163 175 4,844 4,295
Purchase of fixed and
intangible assets 9,722 5,272 79 39 9,801 5,311
The Group’s two reportable segments are classified according to the nature of the business. The airline business
segment comprises the Group’s passenger and cargo operations. The non-airline business segment includes
mainly catering, ground and aircraft ramp handling services.
The major revenue earning asset is the aircraft fleet which is jointly used by the passenger and cargo services.
Management considers that there is no suitable basis for allocating such assets and related operating costs
between the two segments. Accordingly, passenger and cargo services are not disclosed as separate business
segments.
Inter-segment sales are based on prices set on an arm’s length basis.
Cathay Pacific Airways Limited Annual Report 2007
54