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Cathay Pacific Airways Limited Annual Report 2011 17
Review of Operations PASSENGER SERVICES
Home market – Hong Kong and Pearl
River Delta
Demand on routes originating in Hong Kong was
generally robust in 2011. Premium and economy class
revenues both increased and did so at rates faster than
those at which capacity increased.
Demand for premium class travel originating in Hong
Kong continued to grow in the first half of 2011. There
was some reduction in the rate of growth of demand in
the second half as corporate customers started to
review their travel policies in the light of economic
conditions. The number of premium class passengers
carried and the premium class yield increased in 2011.
Demand for economy class travel originating in Hong
Kong was generally robust in 2011. However demand
for travel to Japan was heavily affected by the
earthquake and tsunami in March 2011. We reduced
capacity in line with the reduction in demand. Demand
recovered as the year progressed. Capacity was fully
restored by late October.
•
•
•
We reduced capacity on the Bangkok route following
the serious floods in Thailand in November 2011.
Demand on this route from group and individual
travellers was reduced. Following a recovery in
demand from group travellers, we restored capacity
in December.
Business derived from the Pearl River Delta continued
to grow in 2011. Economic development in the region
continues to support demand for air travel. Increases in
capacity on routes to Southeast Asia, North America
and Europe helped to meet this demand. However, our
business derived from the Pearl River Delta is under
pressure as a result of competitors increasing capacity
and more direct cross-strait flights.
India, Middle East, Pakistan and Sri
Lanka
In India, strong competition on the Delhi and Mumbai
routes adversely affected our economy class business.
Premium class business on these routes was generally
robust. Business on the Chennai and Bengaluru routes
remained firm.
•
•
•
Available seat kilometres (“ASK”), load factor and yield by region for
Cathay Pacific and Dragonair passenger services for 2011 were as follows:
ASK (million) Load factor (%) Yield
2011 2010 Change 2011 2010 Change Change
India, Middle East, Pakistan and
Sri Lanka 11,467 10,981 +4.4% 74.2 77.5 -3.3%pt +9.5%
Southeast Asia 16,020 14,312 +11.9% 82.6 82.8 -0.2%pt +7.5%
Southwest Pacific and South Africa 19,082 18,327 +4.1% 76.3 80.2 -3.9%pt +10.7%
Europe 22,552 20,993 +7.4% 83.7 85.9 -2.2%pt +10.1%
North Asia 25,375 24,316 +4.4% 73.5 79.7 -6.2%pt +14.8%
North America 31,844 26,819 +18.7% 87.1 89.9 -2.8%pt +4.0%
Overall 126,340 115,748 +9.2% 80.4 83.4 -3.0%pt +8.7%