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55
Cathay Pacific Airways Limited Annual Report 2005
1. Turnover (continued)
(b) Secondary reporting by business segment
2005 2004
HK$M HK$M
Revenue – external sales
– Passenger services 30,274 26,407
– Cargo services 12,852 11,395
43,126 37,802
Unallocated revenue
– Catering, recoveries and other services 7,783 4,959
50,909 42,761
The Group is engaged in two main business segments: in passenger business through the Company and in
freight traffic through the Company and a subsidiary. Catering services, recoveries and other airline supporting
services which supplement the Group’s main operating business are included in unallocated revenue.
Analysis of net assets by business segment:
The major revenue earning asset is the aircraft fleet which is jointly used by the passenger services and cargo
services segments. Management considers it is not appropriate to allocate such assets between the two
segments as there is no suitable basis for so doing. Accordingly, analysis of net assets by business segment is
not disclosed.
2. Operating profit
2005 2004
HK$M HK$M
Operating profit has been arrived at after charging/(crediting):
Depreciation of fixed assets
– Leased 1,853 1,855
– Owned 2,110 1,909
Amortisation of intangible assets 44 84
Operating lease rentals
– Land and buildings 382 363
– Aircraft and related equipment 1,258 948
– Others 36 34
Operating lease income
– Aircraft and related equipment (11) (23)
Cost of stock expensed 1,427 1,224
Exchange differences (156) (199)
Auditors’ remuneration 6 6
Income from unlisted investments (119) (103)
Income from listed investments (6) (3)
Share of associates’ tax 50 58
Notes to the Accounts Profit and Loss Account