Cathay Pacific 2007 Annual Report Download - page 19

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Capacity – cargo and mail ATK
HK$ million
0
1,000
500
1,500
2,000
2,500
3,000
3,500
2003 2004 2005 2006 2007
Turnover
Million tonne
kilometres
0
1,000
500
1,500
2,000
2,500
2003 2004 2005 2006 2007
Review of Operations
Cargo Services
DRAGONAIR
Both tonnage and revenue dropped year on year due to the termination of Dragonair’s
European services in February. Demand out of Mainland China, and in particular Shanghai,
was strong throughout the year, though we saw a rise in competition on key routes.
ATK (million) Load factor (%) Yield
2007 2006 Change 2007 2006 Change Change
Dragonair 833 2,080 -60.0% 55.6 72.7 -17.1%pt +55.7%
• Total tonnage carried dropped by 26.8% due to the
termination of Dragonair’s European services.
• We also 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
freighter profitably.
• The higher price for fuel was particularly felt on the
operation of the four older and more fuel inefficient
Boeing 747-200F and Boeing 747-300F freighters.
These aircraft will be withdrawn from service over
the next two years.
• The Japan market was soft throughout the year with
a significant fall in yield.
Cathay Pacific Airways Limited Annual Report 2007 17