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12 Cathay Pacific Airways Limited Annual Report 2005
Turnover
HK$ million
2001 2002 2003 2004 2005
0
2,000
4,000
6,000
8,000
10,000
12,000
Capacity – cargo and mail ATK
Million tonne
kilometres
2001 2002 2003 2004 2005
0
2,000
4,000
6,000
8,000
10,000
Review of Operations Cargo Services
Cathay Pacific set new revenue and tonnage records as capacity increased
12.9%. Cargo yield dipped 0.6% to HK$1.75. Volumes were boosted by
transshipment cargo to and from Shanghai, following the introduction of a
daily freighter service in January 2005. A new service to Dallas and Atlanta
commenced in November. Growth out of China slowed in the second half in
the face of high fuel prices, but the long-term growth prospects for air cargo
remain positive. Hong Kong remains the primary gateway to the Pearl River
Delta despite increased competition from new airports in the region.
ATK (million) Load factor (%) Yield
2005 2004 Change 2005 2004 Change Change
Cathay Pacific 9,879 8,748 +12.9% 67.0 68.7 -1.7%pt -0.6%
• The world’s first B747-400BCF passenger-to-freighter
conversion aircraft entered service in December.
At the end of 2005 we operated a fleet of seven
B747-400 and seven B747-200 freighters.
• Yield and load factors declined as a result of weak
demand out of Europe, the United States and Australia
with traditional directional imbalances exaggerated by
large increases in competitor capacity.
• We launched a three-times-weekly service to Dallas,
continuing on to Atlanta. The two new destinations
will also bring new opportunities to connect with
transshipments from South and Central America.
• Overnight express operations on behalf of DHL
were launched to Shanghai, Beijing and Nagoya in
March, further developing Hong Kong as a regional
express cargo hub.
• High fuel prices negatively affected the profitability
of our freighter services. The adverse impact of
high fuel prices was only partially offset by fuel
surcharges passed on to customers.