Cathay Pacific 2014 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2014 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 112

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Cathay Pacific Airways Limited
56 Notes to the Financial Statements Statement of Profit or Loss and
Other Comprehensive Income
1. Turnover
Turnover comprises revenue and surcharges from transportation services, airline catering, recoveries and other
services provided to third parties.
2. Segment information
(a) Segment results
Airline business Non-airline business Unallocated Total
2014
HK$M
2013
HK$M
2014
HK$M
2013
HK$M
2014
HK$M
2013
HK$M
2014
HK$M
2013
HK$M
Profit or loss
Sales to external
 customers 104,869 99,284 1,122 1,200 105,991 100,484
Inter-segment sales 883,111 2,206 3,119 2,214
Segment revenue 104,877 99,292 4,233 3,406 109,110 102,698
Segment results 4,422 4,214 13 (454) 4,435 3,760
Net finance charges (1,148) (1,008) (10) (11) (1,158) (1,019)
3,274 3,206 3(465) 3,277 2,741
Share of profits of
 associates 772 838 772 838
Profit before taxation 4,049 3,579
Taxation (600) (681) 16(599) (675)
Profit for the year 3,450 2,904
Other segment
 information
Depreciation and
 amortisation 7,919 6,948 420 404 8,339 7,352
Purchase of fixed and
 intangible assets 14,348 19,751 470 783 14,818 20,534
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 handling, aircraft ramp handling services and cargo terminal operations. The unallocated
results represent the Group’s share of profits of associates.
The major revenue earning asset is the aircraft fleet which is used for both 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.