Cathay Pacific 2007 Annual Report Download

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Stock code: 00293
Annual Report 2007

Table of contents

  • Page 1
    Annual Report 2007 Stock code: 00293

  • Page 2
    ... of Changes in Equity 54 Notes to the Accounts 88 Principal Subsidiaries and Associates 90 Statistics 95 Glossary 96 Corporate and Shareholder Information Cathay Pacific Airways is an international airline registered and based in Hong Kong. We currently offer scheduled passenger and cargo services...

  • Page 3
    ... services within Asia. Cathay Pacific and its subsidiaries employ more than 19,200 people in Hong Kong. The airline is listed on The Stock Exchange of Hong Kong Limited as are its substantial shareholders Swire Pacific Limited ("Swire Pacific"), Air China and CITIC Pacific Limited ("CITIC Pacific...

  • Page 4
    2 Cathay Pacific Airways Limited Annual Report 2007 Financial and Operating Highlights Group Financial Statistics 2007 Results Turnover Profit attributable to Cathay Pacific shareholders Earnings per share Dividend per share Profit margin HK$ million HK$ million HK cents HK cents % 2006 Change...

  • Page 5
    ...in note 27(e) to the accounts. In 2008, we expect the total fleet size for the Cathay Pacific Group to grow to 169 aircraft, an increase of 10. These additional aircraft will be used to expand further Cathay Pacific and Dragonair route networks and to continue to develop Hong Kong's position as Asia...

  • Page 6
    ... and adding new routes to its network. The passenger operation saw a record number of customers flying. Revenue hit a new high with a sharp increase in yield. Cargo demand was generally weaker than expected for much of the year. High fuel prices continue to be a concern. During 2007 Cathay Pacific...

  • Page 7
    ...New York and San Francisco. We also added flights to Adelaide, Frankfurt, Paris, Perth, Tokyo, Toronto and Vancouver. • We reduced minimum connecting times with Dragonair, making it easier for passengers to transfer through the Hong Kong hub. We also reduced minimum connecting times with Air China...

  • Page 8
    6 Cathay Pacific Airways Limited Annual Report 2007 2007 in Review Commitment to staff • Cathay Pacific and its subsidiaries employed more than 25,900 people worldwide at the end of 2007 . Some 17 ,100 staff worked for the airline itself, with more than 11,800 of those employed in Hong Kong. ...

  • Page 9
    ... Airways Limited Annual Report 2007 7 2007 in Review Environment • Cathay Pacific published its first Corporate Social Responsibility report in 2007 , detailing the airline's environmental performance and initiatives on social responsibility including safety and health, community initiatives...

  • Page 10
    ... the Cathay Pacific Group. • Dragonair was named a "Caring Company" by the Hong Kong Council of Social Service for the second consecutive year. Pioneer in technology • A number of enhancements to Dragonair's e-business capabilities were launched in 2007 , better aligning the airline with sister...

  • Page 11
    Cathay Pacific Airways Limited Annual Report 2007 9 2007 in Review FLEET PROFILE Number as at 31st December 2007 Leased Firm orders '10 and beyond Expiry of operating leases '13 and beyond Purchase rights Aircraft type Owned Finance Operating Total '08 '09 Total '08 '09 '10 '11 '12...

  • Page 12
    ... Airways Limited Annual Report 2007 Innovative Product Space, comfort and superior service in the new First Class suites. In 2007 Cathay Pacific began rolling out its innovative new long-haul product featuring spacious suites in First Class, full-flat beds with enhanced privacy in Business Class...

  • Page 13
    Cathay Pacific Airways Limited Annual Report 2007 11 Business Class passengers enjoy more privacy and a full-flat bed.

  • Page 14
    12 Cathay Pacific Airways Limited Annual Report 2007 Review of Operations Passenger Services CATHAY PACIFIC In 2007 we achieved our highest-ever passenger revenue and also record passenger numbers with an average load factor of 81.1%. Passenger demand was high throughout the year on most routes...

  • Page 15
    Cathay Pacific Airways Limited Annual Report 2007 13 Review of Operations Passenger Services Comments by region are as follows: South West Pacific and South Africa • We increased capacity to Australia with Sydney getting its fourth daily flight and a third daily Melbourne flight added from ...

  • Page 16
    14 Cathay Pacific Airways Limited Annual Report 2007 Review of Operations Passenger Services DRAGONAIR It was an eventful year for Dragonair. Following the launch of Phuket services in December 2006, five new destinations were added to the network and many routes were strengthened to improve ...

  • Page 17
    ... four-times-weekly flight. North Asia • We continue to strengthen Hong Kong's position as the premier gateway to Mainland China by increasing the frequencies to secondary cities. Passenger numbers rose, with more traffic from Cathay Pacific's international network. • Demand on the key Beijing...

  • Page 18
    ... Limited Annual Report 2007 Review of Operations Cargo Services CATHAY PACIFIC Cargo demand was weaker than expected throughout 2007 , though with a capacity increase of 20.3% we did see a new tonnage record set. Yield fell by 7 .7%, mainly due to weak demand out of Europe and North Asia. Growth...

  • Page 19
    ... stopped our New York service on 31st March when the freighter wet-leased from China Airlines was returned. • Two Boeing 747-400BCF freighters were added to our fleet in 2007 . One more arrived in early 2008 and another will arrive in August. • The high fuel price and lower yield led to reduced...

  • Page 20
    ...Airways Limited Annual Report 2007 Cathay Pacific and Dragonair are working together to build the Hong Kong hub. Cathay Pacific is committed to developing Hong Kong's position as one of the leading international aviation hubs. The airline has worked to improve connection times with sister airline...

  • Page 21
    Cathay Pacific Airways Limited Annual Report 2007 19 ctivity

  • Page 22
    ... main challenges facing the Group with fuel prices reaching a high of US$116 per barrel during the year. Turnover Group* 2007 HK$M Passenger services Cargo services Catering, recoveries and other services Turnover * Turnover includes Dragonair results from 1st October 2006. Cathay Pacific 2006 HK...

  • Page 23
    Cathay Pacific Airways Limited Annual Report 2007 21 Financial Review Cathay Pacific • Passenger turnover increased by 17 .0% to HK$39,299 million as a result of strong demand. The number of passengers carried increased by 6.2% to 17 .8 million and revenue passenger kilometres increased by ...

  • Page 24
    ...: Group* 2007 HK$M Staff Inflight service and passenger expenses Landing, parking and route expenses Fuel Aircraft maintenance Aircraft depreciation and operating leases Other depreciation and operating leases Commissions Exchange gain Others Net operating expenses Net finance charges Total net...

  • Page 25
    ...2006: HK$158 million). • Aircraft maintenance increased as a result of the fleet expansion. • Aircraft depreciation and operating leases increased due to the new aircraft deliveries. AHK Air Hong Kong Limited ("AHK") • The only all-cargo carrier in Hong Kong is 60% owned by Cathay Pacific. It...

  • Page 26
    ... Limited Annual Report 2007 Financial Review • AHK currently operates a fleet of eight Airbus A300600F freighters. • During the year AHK further expanded its overnight express cargo network to Beijing and Shanghai, increasing the number of cities served in Asia to 10. Services to Manila...

  • Page 27
    ... will commence operation in March 2008. • The group's headcount increased by 1,580 to approximately 11,700 in 2007 to support expansion and further staff are being recruited and trained to cope with the anticipated future growth. Assets • Total assets as at 31st December 2007 were HK$117 ,650...

  • Page 28
    26 Cathay Pacific Airways Limited Annual Report 2007 Financial Review Borrowings and capital • Borrowings increased by 13.9% to HK$36,368 million compared with HK$31,943 million in 2006. • Borrowings are mainly denominated in US dollars, Hong Kong dollars, Singapore dollars and Euros, and ...

  • Page 29
    ...fic Airways Limited Annual Report 2007 27 Financial Review Value added The following table summarises the distribution of the Group's value added in 2006 and 2007: 2007 HK$M Total revenue Less: Purchases of goods and services Value added by the Group Add: Share of profits of associates Total...

  • Page 30
    ... Limited and Hong Kong Aircraft Engineering Company Limited, and a Director of Swire Properties Limited, The Hongkong and Shanghai Banking Corporation Limited and Air China Limited. He joined the Swire group in 1978 and in addition to Hong Kong has worked for the group in Australia and Papua New...

  • Page 31
    ... Non-Executive Director of a number of listed companies, including Zhejiang Expressway Company Limited, PetroChina Company Limited, BOC Hong Kong (Holdings) Limited, U-Ming Marine Transport Corp., Sing Tao News Corporation Limited and Wing Hang Bank, Limited. Secretary FU, Yat Hung David#, aged 44...

  • Page 32
    ...Activities Cathay Pacific Airways Limited (the "Company") is managed and controlled in Hong Kong. As well as operating scheduled airline services, the Company and its subsidiaries (the "Group") are engaged in other related areas including airline catering, aircraft handling and aircraft engineering...

  • Page 33
    Cathay Pacific Airways Limited Annual Report 2007 31 Directors' Report The Company adopted a share option scheme on 10th March 1999. During the year, 4,327 ,500 shares were issued under the scheme. Details of the scheme can be found in note 20 to the accounts. At 31st December 2007 , 3,940,025,...

  • Page 34
    32 Cathay Pacific Airways Limited Annual Report 2007 Directors' Report materials. Payment is made in cash by DHL to AHK against invoice presented monthly within 30 days from the date of receipt of the invoice. The term of the DHL Services Agreement is from 17th October 2002 to 31st December ...

  • Page 35
    ... Pacific Airways Limited Annual Report 2007 33 Directors' Report (d) Pursuant to an agreement dated 31st May 2005 ("PCCW Services Agreement") between Cathay Pacific Loyalty Programmes Limited ("CPLP") with PCCW Teleservices (Hong Kong) Limited ("Teleservices"), Teleservices provides services to...

  • Page 36
    ...HAECO group") provide services to the Group's aircraft fleets. The services include line maintenance, base maintenance, comprehensive stores and logistics support, component and avionics overhaul, material supply, engineering services and ancillary services at Hong Kong International Airport, Xiamen...

  • Page 37
    ... SFO): No. of shares Cathay Pacific Airways Limited Philip Chen Tony Tyler Hong Kong Aircraft Engineering Company Limited John Slosar 6,400 0.00385 9,000 5,000 0.00023 0.00013 Percentage of issued capital Other than as stated above, no Director or chief executive of Cathay Pacific Airways Limited...

  • Page 38
    ... 2007: (a) Under Section 317 of the SFO, each of Air China, China National Aviation Company Limited ("CNAC"), CITIC Pacific and Swire Pacific, being a party to the Shareholders' Agreement in relation to the Company dated 8th June 2006, was deemed to be interested in a total of 2,948,122,554 shares...

  • Page 39
    ...fic Airways Limited Annual Report 2007 37 Corporate Governance Cathay Pacific is committed to maintaining a high standard of corporate governance and devotes considerable effort to identifying and formalising best practices of corporate governance. The Company has complied throughout the year...

  • Page 40
    ... Swire group. The provision of housing affords ease of relocation either within Hong Kong or elsewhere in accordance Board Safety Review Committee The Board Safety Review Committee reviews and reports to the Board on safety issues. It meets three times a year and comprises two executive Directors...

  • Page 41
    Cathay Pacific Airways Limited Annual Report 2007 39 Corporate Governance with the needs of the business and as part of the training process whereby managers gain practical experience in various businesses within the Swire group, and payment of bonuses on a group-wide basis enables postings to ...

  • Page 42
    ... can be addressed to the Corporate Communication Department whose contact details are given on page 96. In order to promote effective communication, the Company maintains its website at www.cathaypacific.com on which financial and other information relating to the Company and its business is...

  • Page 43
    Cathay Pacific Airways Limited Annual Report 2007 41 Independent Auditor's Report To the shareholders of Cathay Pacific Airways Limited (Incorporated in Hong Kong with limited liability) We have audited the consolidated accounts of Cathay Pacific Airways Limited (the "Company") set out on pages...

  • Page 44
    ... with the Group's share of the results and net assets of its associates. Subsidiaries are entities controlled by the Group. Subsidiaries are considered to be controlled if the Company has the power, directly or indirectly, to govern the financial and operating policies, so as to obtain benefits from...

  • Page 45
    Cathay Pacific Airways Limited Annual Report 2007 43 Principal Accounting Policies 4. Foreign currencies Foreign currency transactions entered into during the year are translated into Hong Kong dollars at the market rates ruling at the relevant transaction dates whilst the following items are ...

  • Page 46
    44 Cathay Pacific Airways Limited Annual Report 2007 Principal Accounting Policies 8. Financial assets Other long-term receivables, bank and security deposits, trade and other short-term receivables are categorised as loans and receivables and are stated at amortised cost less impairment loss. ...

  • Page 47
    Cathay Pacific Airways Limited Annual Report 2007 45 Principal Accounting Policies 12. Retirement benefits Arrangements for staff retirement benefits vary from country to country and are made in accordance with local regulations and customs. The retirement benefit obligation in respect of ...

  • Page 48
    ...Cathay Pacific Airways Limited Annual Report 2007 Consolidated Profit and Loss Account for the year ended 31st December 2007 Note 2007 HK$M 2006 HK$M 2007 US$M 2006 US$M Turnover Passenger services Cargo services Catering, recoveries and other services Total turnover Expenses Staff Inflight...

  • Page 49
    ...Related pledged security deposits Net current portion of long-term liabilities Trade and other payables Unearned transportation revenue Taxation Net current assets Net assets CAPITAL AND RESERVES Share capital Reserves Funds attributable to Cathay Pacific shareholders Minority interests Total equity...

  • Page 50
    ... Pacific Airways Limited Annual Report 2007 Company Balance Sheet at 31st December 2007 Note 2007 HK$M 2006 HK$M 2007 US$M 2006 US$M ASSETS AND LIABILITIES Non-current assets and liabilities Fixed assets Intangible assets Investments in subsidiaries Investments in associates Other long-term...

  • Page 51
    Cathay Pacific Airways Limited Annual Report 2007 49 Consolidated Cash Flow Statement for the year ended 31st December 2007 Note 2007 HK$M 2006 HK$M 2007 US$M 2006 US$M Operating activities Cash generated from operations Dividends received from associates Interest received Net interest ...

  • Page 52
    ... to profit for the year Revaluation surplus recognised during the year Share of reserves of associates (note 21) Exchange differences Net gain/(loss) recognised directly in equity Profit for the year Total recognised profit/(loss) for the year 2006 final dividend 2007 interim dividend Dividends paid...

  • Page 53
    ...fic Airways Limited Annual Report 2007 51 Consolidated Statement of Changes in Equity for the year ended 31st December 2006 Attributable to Cathay Pacific shareholders Non-distributable Cash flow hedge reserve HK$M Capital redemption reserve and others (restated) HK$M Minority interests Total...

  • Page 54
    ... Airways Limited Annual Report 2007 Company Statement of Changes in Equity for the year ended 31st December 2007 Non-distributable Share capital HK$M Retained profit HK$M Share premium HK$M Investment revaluation reserve HK$M Cash ï¬,ow hedge reserve HK$M Capital redemption reserve HK$M Total...

  • Page 55
    ... Airways Limited Annual Report 2007 53 Company Statement of Changes in Equity for the year ended 31st December 2006 Non-distributable Share capital HK$M Retained profit HK$M Share premium HK$M Investment revaluation reserve HK$M Cash flow hedge reserve HK$M Capital redemption reserve HK$M Total...

  • Page 56
    ... HK$M Non-airline business 2007 HK$M 2006 HK$M Unallocated 2007 HK$M 2006 HK$M 2007 HK$M Total 2006 HK$M Revenue Sales to external customers Inter-segment sales Segment revenue Segment results Net finance charges Share of profits of associates Profit before tax Taxation Profit for the year Assets...

  • Page 57
    ... Limited Annual Report 2007 55 Notes to the Accounts Profit and Loss Account 2. Segment information (continued) (b) Secondary reporting by geographical segment 2007 HK$M 2006 HK$M Turnover by origin of sale: North Asia - Hong Kong and Mainland China - Japan, Korea and Taiwan South West Pacific...

  • Page 58
    ... Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Profit and Loss Account 3. Operating profit 2007 HK$M 2006 HK$M Operating profit has been arrived at after charging/(crediting): Depreciation of fixed assets - Leased - Owned Amortisation of intangible assets Operating...

  • Page 59
    Cathay Pacific Airways Limited Annual Report 2007 57 Notes to the Accounts Profit and Loss Account 4. Net finance charges 2007 HK$M 2006 HK$M Net interest charges comprise: - Obligations under finance leases stated at amortised cost - Obligations under finance leases designated as at fair ...

  • Page 60
    ...fic Airways Limited Annual Report 2007 Notes to the Accounts Profit and Loss Account 5. Taxation (continued) A reconciliation between tax charge and accounting profit at applicable tax rates is as follows: 2007 HK$M 2006 HK$M Consolidated profit before tax Notional tax calculated at Hong Kong...

  • Page 61
    Cathay Pacific Airways Limited Annual Report 2007 59 Notes to the Accounts Balance Sheet 9. Fixed assets Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Owned HK$M Total HK$M Group Cost At 1st January 2007 Exchange differences Additions ...

  • Page 62
    60 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 9. Fixed assets (continued) Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Owned HK$M Total HK$M Company Cost At 1st January 2007 Additions Disposals...

  • Page 63
    Cathay Pacific Airways Limited Annual Report 2007 61 Notes to the Accounts Balance Sheet 9. Fixed assets (continued) (a) Finance leased assets Certain aircraft are subject to leases with purchase options to be exercised at the end of the respective leases. The remaining lease terms range from 1...

  • Page 64
    62 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 10. Intangible assets Group Goodwill HK$M Computer systems HK$M Total HK$M Company Computer systems HK$M Cost At 1st January 2007 Additions At 31st December 2007 At 1st January 2006 Additions (restated) ...

  • Page 65
    ...in trade and other payables Decrease in deferred taxation Decrease in reserves Increase in goodwill Principal subsidiaries are listed on page 88. 484 11 (99) (92) (28) 276 12. Associates Group 2007 HK$M 2006 (restated) HK$M Company 2007 HK$M 2006 HK$M Hong Kong listed shares at cost (Market value...

  • Page 66
    64 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 12. Associates (continued) 2007 HK$M 2006 (restated) HK$M Summarised financial information of associates: Assets Liabilities Equity Turnover Profit for the year 101,323 (61,963) 39,360 57,057 5,097 92,943 ...

  • Page 67
    Cathay Pacific Airways Limited Annual Report 2007 65 Notes to the Accounts Balance Sheet 14. Long-term liabilities 2007 2006 Non-current HK$M Current HK$M Non-current HK$M Note Current HK$M Group Long-term loans Obligations under finance leases (a) (b) 1,665 2,213 3,878 15,298 17,192 32,...

  • Page 68
    66 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 14. Long-term liabilities (continued) Borrowings other than bank loans are repayable on various dates up to 2011 at interest rates between 3.06% and 5.14% per annum while bank loans are repayable up to 2018...

  • Page 69
    Cathay Pacific Airways Limited Annual Report 2007 67 Notes to the Accounts Balance Sheet 15. Retirement benefits The Group operates various defined benefit and defined contribution retirement schemes for its employees in Hong Kong and in certain overseas locations. The assets of these schemes ...

  • Page 70
    68 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 15. Retirement benefits (continued) Group 2007 HK$M 2006 HK$M Company 2007 HK$M 2006 HK$M Net liability recognised in the balance sheet: Present value of funded obligations Fair value of plan assets Net ...

  • Page 71
    Cathay Pacific Airways Limited Annual Report 2007 69 Notes to the Accounts Balance Sheet 15. Retirement benefits (continued) Group 2007 HK$M 2006 HK$M Company 2007 HK$M 2006 HK$M Fair value of plan assets comprises: Equities Debt instruments Deposits and cash Others 6,542 2,276 304 9 9,131 5,...

  • Page 72
    70 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 16. Deferred taxation Group 2007 HK$M 2006 (restated) HK$M Company 2007 HK$M 2006 HK$M Deferred tax assets: - retirement benefits - provisions - tax losses - cash flow hedges Deferred tax liabilities: - ...

  • Page 73
    Cathay Pacific Airways Limited Annual Report 2007 71 Notes to the Accounts Balance Sheet 17. Trade and other receivables Group 2007 HK$M 2006 HK$M Company 2007 HK$M 2006 HK$M Trade debtors Derivative financial assets Other receivables and prepayments Due from associates 4,938 2,666 3,709 63 ...

  • Page 74
    ...Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 18. Liquid funds Group 2007 HK$M 2006 HK$M Company 2007 HK$M 2006 HK$M Short-term deposits and bank balances Short-term deposits maturing beyond three months when placed Funds with investment managers - debt securities listed...

  • Page 75
    Cathay Pacific Airways Limited Annual Report 2007 73 Notes to the Accounts Balance Sheet 20. Share capital 2007 Number of shares HK$M 2006 Number of shares HK$M Authorised (HK$0.20 each) At 1st January Additions At 31st December Issued and fully paid (HK$0.20 each) At 1st January Issue of new ...

  • Page 76
    74 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Balance Sheet 21. Reserves Group 2007 HK$M 2006 (restated) HK$M Company 2007 HK$M 2006 HK$M Retained profit Share premium Investment revaluation reserve Cash flow hedge reserve Capital redemption reserve and others 32,...

  • Page 77
    Cathay Pacific Airways Limited Annual Report 2007 75 Notes to the Accounts Cash Flow Statement 22. Reconciliation of operating profit to cash generated from operations 2007 HK$M 2006 HK$M Operating profit Depreciation Amortisation of intangible assets Loss on disposal of fixed assets and ...

  • Page 78
    76 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Directors and Employees 24. Directors' and executive officers' remuneration (a) Directors' remuneration disclosed pursuant to the Listing Rules is as follows: Cash Basic salary/ Directors' fee* Bonus HK$'000 HK$'000 ...

  • Page 79
    ...fic Airways Limited Annual Report 2007 77 Notes to the Accounts Directors and Employees 24. Directors' and executive officers' remuneration (continued) (b) Executive Officers' remuneration disclosed as recommended by the Listing Rules is as follows: Cash Contributions to retirement schemes HK...

  • Page 80
    ... costs to JSSHK in exchange for services provided. Service fees calculated at 2.5% of the Group's profit before tax, results of associates, minority interests, and any profits and losses on disposal of fixed assets were paid annually. Service fees paid for the year ended 31st December 2007 were HK...

  • Page 81
    ...'s air cargo operations. The Company is reviewing the Statement of Objections with legal counsel and will make a timely response to it. The Company has been named as a defendant in a number of civil class action complaints in the United States, Canada and Australia alleging violations of local...

  • Page 82
    80 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Supplementary Information 28. Financial risk management In the normal course of business, the Group is exposed to fluctuations in foreign exchange rates, interest rates and jet fuel prices. These exposures are managed, ...

  • Page 83
    Cathay Pacific Airways Limited Annual Report 2007 81 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) (b) Liquidity risk The Group's policy is to monitor liquidity and compliance with lending covenants, so as to ensure sufficient liquid funds and ...

  • Page 84
    82 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) 2006 After one year but within two years HK$M After two years but within five years HK$M Within one year HK$M After five years HK$M Total HK$M ...

  • Page 85
    Cathay Pacific Airways Limited Annual Report 2007 83 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) 2006 USD HK$M EUR HK$M TWD HK$M SGD HK$M RMB HK$M JPY HK$M Group Trade and other receivables Liquid funds Long-term loans Obligations under finance ...

  • Page 86
    ... Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) Sensitivity analysis for foreign currency exposure A five percent appreciation of Hong Kong dollar against the following currencies at 31st December 2007...

  • Page 87
    Cathay Pacific Airways Limited Annual Report 2007 85 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) Group 2007 HK$M 2006 HK$M Company 2007 HK$M 2006 HK$M Variable rate instruments Liquid funds Long-term loans Obligations under finance leases Interest ...

  • Page 88
    86 Cathay Pacific Airways Limited Annual Report 2007 Notes to the Accounts Supplementary Information 28. Financial risk management (continued) (iii) Fuel price risk Fuel accounts for 36% of the Group's operating expenses (2006: 36%). Fuel price risk is measured by employing sensitivity analysis...

  • Page 89
    ... accounts. Hong Kong (IFRIC) Interpretation 13 "Customer Loyalty Programmes" is relevant to the Group and becomes effective for accounting periods beginning on or after 1st July 2008. The interpretation requires that revenue from the initial sales transaction is allocated to free or discounted goods...

  • Page 90
    ...) Limited Hong Kong Computerised reservation systems and related services Cargo airline Property investment Property investment Property investment Travel tour operator Financial services Aircraft acquisition facilitator Aircraft acquisition facilitator Airline catering Travel reward programme...

  • Page 91
    ...China Limited Cathay Kansai Terminal Services Company Limited Cebu Pacific Catering Services Inc. Ground Support Engineering Limited People's Republic of China Japan Philippines Hong Kong Airline Ground handling Airline catering Airport ground engineering support and equipment maintenance Aircraft...

  • Page 92
    ... liquid funds and bank overdrafts) Retirement benefit obligations Deferred taxation Net assets Financed by: Funds attributable to Cathay Pacific shareholders Minority interests Total equity Per share Shareholders' funds EBITDA Earnings/(loss) Dividend Ratios Profit/(loss) margin Return on capital...

  • Page 93
    Cathay Pacific Airways Limited Annual Report 2007 91 Statistics 2005 2004 2003 2002 2001 2000 1999 1998 30,274 12,852 1,337 44,463 (40,320) 4,143 (444) - 269 3,968 (500) 3,468 (170) 3,298 (2,...

  • Page 94
    ... Passenger load factor Cargo carried Cargo and mail tonne kilometres Cargo and mail load factor Excess baggage carried Mail carried Kilometres flown Block hours Aircraft departures Length of scheduled routes network Destinations at year end Staff number at year end ATK per staff On-time performance...

  • Page 95
    Cathay Pacific Airways Limited Annual Report 2007 93 Statistics 2005 2004 2003 2002 2001 2000 1999 1998 17,751 12,813 82,766 15,438 65,110 75.2 78.7 1,118 6,618 67.0 2,489 20,...

  • Page 96
    ...2002 2001 2000 1999 1998 Productivity* Cost per ATK ATK per HK$'000 staff cost Aircraft utilisation Share prices High Low Year-end Price ratios (Note) Price/earnings Market capitalisation/ funds attributable to Cathay Pacific shareholders Price/cash flow Times HK$ Unit 2.32 2,105 11.7 23.1 18...

  • Page 97
    Cathay Pacific Airways Limited Annual Report 2007 95 Glossary Terms Borrowings Total borrowings (loans and lease obligations) less security deposits, notes and zero coupon bonds. Net borrowings Borrowings and bank overdrafts less liquid funds. Available tonne kilometres ("ATK") Overall capacity,...

  • Page 98
    ... Airways Limited Annual Report 2007 Corporate and Shareholder Information Cathay Pacific Airways Limited is incorporated in Hong Kong with limited liability. Investor relations For further information about Cathay Pacific Airways Limited, please contact: Corporate Communication Department Cathay...

  • Page 99
    DESIGN: FORMAT LIMITED www.format.com.hk Printed in Hong Kong Cert no. SGS-COC-2771

  • Page 100
    www.cathaypacific.com