Cathay Pacific 2007 Annual Report Download - page 24

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Financial Review
Operating expenses
Net operating expenses after deduction of Group recoveries of HK$12,513 million (2006: HK$9,995 million) and of
Cathay Pacific recoveries HK$11,241 million (2006: HK$9,501 million) are analysed as follows:
Group* Cathay Pacific
2007
HK$M
2006
HK$M Change
2007
HK$M
2006
HK$M Change
Staff 12,142 9,950 +22.0% 9,432 8,553 +10.3%
Inflight service and passenger expenses 2,418 1,987 +21.7% 2,018 1,899 +6.3%
Landing, parking and route expenses 8,510 6,948 +22.5% 7,413 6,384 +16.1%
Fuel 15,862 13,333 +19.0% 14,197 12,641 +12.3%
Aircraft maintenance 6,830 5,330 +28.1% 5,367 4,882 +9.9%
Aircraft depreciation and operating leases 6,093 5,160 +18.1% 5,509 4,789 +15.0%
Other depreciation and operating leases 998 862 +15.8% 636 625 +1.8%
Commissions 860 668 +28.7% 752 622 +20.9%
Exchange gain (490) (271) +80.8% (376) (271) +38.7%
Others 1,883 1,603 +17.5% 1,233 1,222 +0.9%
Net operating expenses 55,106 45,570 +20.9% 46,181 41,346 +11.7%
Net finance charges 787 465 +69.2% 455 287 +58.5%
Total net operating expenses 55,893 46,035 +21.4% 46,636 41,633 +12.0%
* Includes Dragonair’s expenses from 1st October 2006.
• Group operating expenses rose 21.4% to
HK$55,893 million partly as a result of Dragonair
figures being included for only three months
in 2006.
• Staff costs increased due to an increase in the
average number of staff.
• Inflight service and passenger expenses rose due to
a 28.5% increase in passenger numbers.
• Landing, parking and route expenses increased as a
result of additional flights and strong foreign
currencies.
• Fuel costs increased due to a 6.5% increase in the
average into-plane fuel price to US$91 per barrel and
a 15.8% increase in consumption to 35.8 million
barrels. Cathay Pacific’s fuel surcharges increased
from HK$6,470 million to HK$7,737 million.
Cathay Pacific Airways Limited Annual Report 2007
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