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Cathay Pacific Airways Limited Annual Report 2003 17
Financial Review
Cathay Pacific:
total operating expenses
28%
Staff
1%
Commissions
19%
Fuel
15%
Landing,
parking and
route
expenses
5%
Inflight
service and
passenger
expenses
11%
Aircraft
maintenance
17%
Depreciation
and operating
leases
2%
Net finance
charges
2%
Others
Cathay Pacific:
fuel price and consumption
US cents per
American gallon
American gallon
in million
20
40
60
80
100
0302010099
700
750
800
850
900
Into wing price – before hedging
Into wing price – after hedging
Uplifted volume
Operating expenses
Group Cathay Pacific
2003 2002 2003 2002
HK$M HK$M Change HK$M HK$M Change
Staff 8,035 7,918 +1.5% 7,318 7, 1 3 0 +2.6%
Inflight service and passenger expenses 1,223 1,464 -16.5% 1,223 1,464 -16.5%
Landing, parking and route expenses 4,193 4,649 -9.8% 4,106 4,468 -8.1%
Fuel 5,236 4,895 +7.0% 5,164 4,735 +9.1%
Aircraft maintenance 2,856 3,312 -13.8% 2,853 3,194 -10.7%
Aircraft depreciation and operating leases 3,988 3,711 +7.5% 3,931 3,624 +8.5%
Other depreciation and operating leases 872 1,009 -13.6% 649 765 -15.2%
Commissions 400 501 -20.2% 398 498 -20.1%
Exchange gain (244) (179) +36.3% (247) (169) +46.2%
Others 794 1,060 -25.1% 721 913 -21.0%
Operating expenses 27,353 28,340 -3.5% 26,116 26,622 -1.9%
Net finance charges 620 74 3 -16.6% 606 723 -16.2%
To tal operating expenses 27,973 29,083 -3.8% 26,722 27,345 -2.3%
•Staff costs increased due to an increase in
average staff numbers.
•Inflight service and passenger expenses
decreased due to a reduction in passenger
numbers and cost control initiatives.
•Landing, parking and route expenses fell as a
result of flight cancellations.
•Fuel costs increased mainly due to the 18.5%
increase in the average fuel price.
•Aircraft maintenance decreased as a result of
flight cancellations and the temporary parking
of aircraft.
•Aircraft depreciation and operating leases
increased due to the new aircraft deliveries.