Cathay Pacific 2008 Annual Report Download - page 27

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50%
Fuel
1%
Net
finance
charges
1%
Commissions
3%
Others
13%
Staff
3%
Inflight service and
passenger expenses
12%
Landing, parking and
route expenses
8%
Aircraft
maintenance
9%
Depreciation
and operating
leases
Total operating expenses
Cathay Pacific Airways Limited Annual Report 2008 25
Financial Review
Underlying (loss)/profit
The following provides a reconciliation on the Group’s reported and underlying (loss)/profit.
2008
HK$M
2007
HK$M
(Loss)/profit attributable to owners of Cathay Pacific (8,558) 7,023
Adjustment to reverse the impact of Hong Kong Accounting Standards 39*
– Fuel derivatives 7,883 (118)
– Currency and interest rate derivatives (5) (162)
Adjustment to reverse our share of Air China’s mark to market fuel hedging losses
in the fourth quarter 1,000 –
Settlement of the United States Department of Justice Cargo Investigations 468 –
Taxation (1,327) 30
Underlying (loss)/profit (539) 6,773
* The adjustment reverses both the unrealised mark to market gain/(loss) and the subsequent realised gain/(loss) and instead recognises the cash amount
received/(paid) on settlement.