Cathay Pacific 2009 Annual Report Download - page 31

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Financial Review
Cathay Pacific and Dragonair operating results analysis
2009
HK$M
2008
HK$M
Airlines operating profit/(loss) before fuel hedging, non-recurring items and tax 285 (1,440)
Profit on disposal of HAECO shares 1,254 –
Realised and unrealised fuel hedging gains/(losses) 2,758 (7,970)
Settlement of the United States Department of Justice Cargo Investigations –(468)
Tax (charge)/credit (170) 1,476
Airlines profit/(loss) after tax 4,127 (8,402)
Share of profits/(losses) from subsidiaries and associates 567 (294)
Consolidated profit/(loss) 4,694 (8,696)
The change in the airlines’ operating profit/(loss) before fuel hedging, non-recurring items and tax can be analysed
as follows:
HK$M
2008 airlines operating loss (1,440)
Passenger and cargo turnover (19,127) Passenger
– Decreased HK$2,157 million due to a 3.7% decrease in
capacity.
– A 1.7% points increase in load factor contributed to an
increase of HK$1,183 million.
– HK$11,070 million decrease with a 19.5% decrease in yield
partly due to a reduction in fuel surcharges.
Cargo
– Decreased HK$2,938 million due to a 13.1% decrease in
capacity.
– A 4.9% points increase in load factor contributed to an
increase of HK$1,452 million.
– HK$5,597 million decrease with a 26.8% decrease in yield
partly due to a reduction in fuel surcharges.
Recoveries and other services 206
Staff (210) – Increased due to provision for ex-gratia payment and higher
average headcount partly offset by savings from no-pay leave.
Inflight service and passenger expenses 421 – Less expenditure due to a 1.6% decrease in passenger
numbers.
Landing, parking and route expenses 496 – Decreased as a result of reduction in capacity.
Fuel 18,972 – Fuel costs decreased due to a 44.3% decrease in the
average into-plane fuel price to US$73 per barrel and a 7.8%
decrease in consumption to 35.3 million barrels.
Aircraft maintenance 1,100 – Decreased with capacity reduction partly offset by provision
for return condition.
Depreciation and operating leases (825) – Increased due to the new aircraft deliveries.
Net finance charges 126 – Decreased as a result of lower interest rates partly offset by
lower return on investment funds.
Others 566
2009 airlines operating profit before
fuel hedging, non-recurring items
and tax 285
Cathay Pacific Airways Limited Annual Report 2009 29