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24 Cathay Pacific Airways Limited Annual Report 2008
Financial Review
Operating expenses
Group Cathay Pacific and Dragonair
2008
HK$M
2007
HK$M Change
2008
HK$M
2007
HK$M Change
Staff 12,428 12,142 +2.4% 11,305 10,975 +3.0%
Inflight service and passenger expenses 3,336 2,903 +14.9% 3,336 2,903 +14.9%
Landing, parking and route expenses 11,039 9,950 +10.9% 10,993 9,876 +11.3%
Fuel 47,317 24,624 +92.2% 46,637 24,227 +92.5%
Aircraft maintenance 7,643 6,830 +11.9% 7,511 6,718 +11.8%
Aircraft depreciation and operating leases 7,211 6,369 +13.2% 7,024 6,303 +11.4%
Other depreciation and operating leases 1,060 998 +6.1% 814 756 +7.7%
Commissions 851 860 -1.0% 851 860 -1.0%
Exchange gain (28) (490) -94.3% (11) (502) -97.8%
Others 3,182 3,433 -7.3% 3,268 3,444 -5.1%
Operating expenses 94,039 67,619 +39.1% 91,728 65,560 +39.9%
Net finance charges 1,012 787 +28.6% 907 645 +40.6%
Total operating expenses 95,051 68,406 +39.0% 92,635 66,205 +39.9%
• Group operating expenses rose 39.0% to
HK$95,051 million.
• The combined cost per ATK of Cathay Pacific and
Dragonair increased from HK$2.87 to HK$3.79 due
to higher fuel prices and unrealised mark to market
losses on fuel derivatives.
Cathay Pacific and Dragonair operating results
2008
HK$M
2007
HK$M
Turnover 83,325 72,360
Total operating expenses (92,635) (66,205)
Reversal of fuel hedging losses/(gains) 7,970 (933)
Operating (loss)/profit before tax and fuel hedging (1,340) 5,222
• The operating loss for Cathay Pacific and Dragonair
combined was HK$1,340 million compared to a
profit of HK$5,222 million in 2007.
• The change was mainly due to higher fuel prices
which offset the increase in turnover.