Cathay Pacific 1998 Annual Report Download - page 14

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12 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Review of Operations
Passenger Services
In January 1998, as part of Cathay Pacific’s restructuring exercise, the individual
route groups were combined into one Network Management team, in order to
optimise the increasing amount of “sixth-freedom” business (i.e. passengers
transiting through Hong Kong) which the airline carries. This revenue stream has
been particularly important in the past year as the number of passengers
travelling to Hong Kong, as a final destination, declined sharply. Although sixth-
freedom traffic has resulted in lower yields, it has enabled load factors to be
maintained at close to 1997 levels.
Available seat kilometres (“ASK”), load factor and yield:
ASK (million) Load Factor (%) Yield
1998 1997 Change 1998 1997 Change Change
Europe 13,927 13,656 +2.0% 74.3 75.5 -1.2%pt -14.5%
Pacific and South Africa 23,862 20,865 +14.4% 68.6 71.2 -2.6%pt -15.5%
North Asia 10,423 10,869 -4.1% 62.5 61.8 +0.7%pt -20.8%
South East Asia and Middle East 12,083 11,714 +3.2% 61.8 60.4 +1.4%pt -19.6%
Overall 60,295 57,104 +5.6% 67.5 68.2 -0.7%pt -18.9%
Service Straight from the Heart is a key element of our
business strategy and our corporate culture. Cathay
Pacific staff take pride in adding that extra dimension of
warmth and friendliness to the helpful, efficient and
courteous service our customers expect.