Cathay Pacific 2008 Annual Report Download - page 20

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Capacity – cargo and mail ATK*
HK$ million
0
8,000
4,000
12,000
16,000
20,000
24,000
2004 2005 2006 2007 2008
Turnover*
Million tonne
kilometres
0
4,000
6,000
2,000
8,000
10,000
12,000
14,000
2004 2005 2006 2007 2008
* Includes Dragonair from 1st October 2006.
Cargo demand was generally more robust than expected during the first half of 2008 but
fell away dramatically in the second half as the impact of the financial crisis was more
deeply felt. Cargo and mail tonnage carried by Cathay Pacific and Dragonair fell by 1.6%
to 1,644,785 tonnes compared to a capacity rise of 0.7%. The load factor fell by 0.8
percentage point to 65.9% while yield, with the help of higher collection of fuel
surcharges, rose by 12.4% to HK$2.54. High fuel prices seriously affected the profitability
of our cargo operation in the first six months while the second half saw demand fall as
major economies went into recession.
Available tonne kilometres (“ATK”), load factor and yield for
Cathay Pacific and Dragonair cargo services:
ATK (million) Load factor (%) Yield
2008 2007 Change 2008 2007 Change Change
Cathay Pacific and Dragonair 13,425 13,335 +0.7% 65.9 66.7 -0.8%pt +12.4%
Review of Operations CARGO SERVICES ASIA MILES
Cathay Pacific
• High fuel prices made it difficult to operate
profitable long-haul freighter flights in the first half.
We removed our older Boeing 747-200 “Classic”
freighters from European services and combined
more flights to ensure profitability.
• We began phasing out the more fuel-inefficient
“Classics” in March 2008. Under an accelerated
retirement programme, all will be retired by
August 2009.
• The move to a more fuel-efficient freighter fleet
began in May with the arrival of our first Boeing 747-
400ERF freighter. Our second Boeing 747-400ERF
freighter arrived in August but the delivery of the
third was put back from November to January 2009
as a result of the strike at Boeing. Three more of the
type will arrive in 2009.
• We also have 10 new-generation Boeing 747-8F
freighters on firm order with delivery commencing
in 2010 – later than originally scheduled.
18 Cathay Pacific Airways Limited Annual Report 2008