Cathay Pacific 2007 Annual Report Download - page 18

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Capacity – cargo and mail ATK
HK$ million
0
4,000
2,000
6,000
8,000
10,000
12,000
14,000
2003 2004 2005 2006 2007
Turnover
Million tonne
kilometres
0
4,000
6,000
2,000
8,000
10,000
12,000
14,000
2003 2004 2005 2006 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 in cargo tonnage carried from Mainland China
continued, despite an increasing number of carriers offering direct flights. High fuel prices
had a negative impact throughout the year with some shift from airfreight to marine transport
as a result. Overall we remain optimistic about Hong Kong’s role as an airfreight hub.
ATK (million) Load factor (%) Yield
2007 2006 Change 2007 2006 Change Change
Cathay Pacific 12,502 10,391 +20.3% 67.5 68.3 -0.8%pt -7.7%
• We added one more aircraft to our freighter fleet in
2007 – our sixth Boeing 747-400BCF. One more
Boeing 747-400BCF will arrive in 2008 with the
conversion of an existing Boeing 747-400.
• We announced our biggest-ever order for new
freighters in November, with an order for 10 Boeing
747-8Fs for delivery between 2009 and 2012. These
new generation aircraft offer greatly improved
efficiency and will enable us to carry more cargo
over longer distances.
• We will also take delivery of six new Boeing 747-
400ERFs, Extended Range Freighters, starting
May 2008.
• High fuel prices continued to have a big impact on
our cargo business, only partially offset by fuel
surcharges.
• The negative effect of fuel prices was particularly
felt on our older, more inefficient Boeing 747-200F
freighters. We will start to withdraw these from
service as new freighters arrive in 2008.
• Demand from Mainland China continued to be strong
and flights out of Hong Kong to North America were
full for much of the year. The freighter service to
Atlanta and Dallas was turned into a daily operation.
• We also increased our freighter frequency to
Chennai and Toronto.
• Demand to and from Australia rose significantly during
the second half of the year, helping to boost yield.
• We saw a marked decline on the Japanese route in
both directions, with tonnage and yield affected by a
modal shift to marine freight.
Cathay Pacific Airways Limited Annual Report 2007
16