Cathay Pacific 2013 Annual Report Download - page 17

Cathay Pacific Airways Limited Interim Report 2013 15
PASSENGER SERVICES
Our passenger business in the first half of 2013 improved compared to the same period in 2012. Cathay
Pacific and Dragonair carried a total of 14.5 million passengers in the first six months of 2013 – a 1.3%
increase compared to the same period in 2012. Revenue increased by 0.8% to HK$34,978 million, although
capacity decreased by 4.8%. The load factor increased by 1.2 percentage points to 81.3%. Yield also
improved by 4.4% to HK69.0 cents.
Available seat kilometres (“ASK”), load factor and yield by region for Cathay Pacific and Dragonair
passenger services for the first half of 2013 were as follows:
ASK (million) Load factor (%) Yield
2013 2012 Change 2013 2012 Change Change
India, Middle East, Pakistan and Sri Lanka 5,356 5,605 -4.4% 75.5 77.3 -1.8%pt +2.5%
Southwest Pacific and South Africa 8,783 9,482 -7.4% 78.5 75.2 +3.3%pt +2.3%
Southeast Asia 9,001 8,612 +4.5% 79.5 80.3 -0.8%pt +3.6%
Europe 10,316 10,812 -4.6% 86.8 84.0 +2.8%pt +4.9%
North Asia 13,973 13,616 +2.6% 73.9 72.2 +1.7%pt -5.0%
North America 14,758 17,224 -14.3% 89.3 87.4 +1.9%pt +13.6%
Overall 62,187 65,351 -4.8% 81.3 80.1 +1.2%pt +4.4%
Review of Operations
• The high price of jet fuel continued to affect
the profitability of our passenger services,
particularly on long-haul routes. However, its
effect was mitigated to an extent by 2012’s
reduction in some long-haul frequencies
which were gradually restored in 2013 and by
operating more long-haul services using fuel-
efficient Boeing 777-300ER aircraft.
• The weakness of a number of operating
currencies relative to the Hong Kong and United
States dollars had a negative impact on yields.
However, the beneficial effect on traffic (for
example on the Japan routes) resulted in an
overall improvement in revenue.
• Our passenger business started the year slowly.
There was no pre-Chinese New Year rush. But
from February to April, leisure traffic was strong
over the Chinese New Year and Easter holidays
and during the Hong Kong Sevens rugby
competition. Business traffic was also strong
during this period.
• Business in May and June was not as strong as
expected, particularly on regional routes. On
these routes, demand in the first half of 2013
did not match the increase in capacity, which
put yields under pressure. Travel within the Asia
Pacific region was affected by H7N9 avian flu
and political issues in Northeast Asia.
• There was an overall reduction in capacity on
long-haul routes. Reduced capacity on long-haul
routes increased load factors and yields.
• All of the long-haul passenger frequencies that
were cancelled as part of 2012’s cost reductions
are restored by September 2013. We restored
flights to Los Angeles (to three times daily from
June) and Toronto (to 10 flights per week from
March). We intend to restore flights to New York
to four times daily from September.