Cathay Pacific 2013 Annual Report Download - page 19

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Cathay Pacific Airways Limited Interim Report 2013 17
Review of Operations
• Load factors on the Middle Eastern routes
benefited from strong demand from foreigners
working in the Middle East.
• The Africa route performed reasonably well
but revenues were affected by the depreciation
of the South African currency. We are facing
strong competition from Mainland China
carriers on the Africa route.
• Traffic on the Australia routes was reasonably
strong, reflecting the country’s generally robust
economy and its attractiveness as a leisure
destination. Business on the New Zealand
route benefited from the alliance with Air New
Zealand, which started in January.
• Demand for travel on our four United States
routes was strong throughout the first half of
2013, in all classes of travel. Frequencies are
being restored on the Los Angeles and New
York routes in line with demand.
• Our Canada routes continued to be affected
by strong competition. However, stronger
demand for travel to and from Toronto led to
the restoration of frequencies on this route to 10
flights per week.
• Demand for travel to and from London was
consistently strong in all classes. We added
a fifth daily flight on the route in June.
Demand for travel to and from other European
destinations held up well despite the economic
problems of theregion.
CARGO SERVICES
Our cargo business has been affected by weak demand since April 2011. High fuel prices, weak demand
and fierce competition continue to affect the business. In the first six months of 2013, Cathay Pacific and
Dragonair carried 741,000 tonnes of cargo and mail – a reduction of 1.7% compared to the same period
in 2012. The Group’s cargo revenue for the first half of 2013 was down by 5.2% to HK$11,278 million
compared to the same period in 2012. Capacity for Cathay Pacific and Dragonair was down by 1.8%.
Theload factor was down by 1.9 percentage points to 62.4%. Yield was down by 3.3% to HK$2.33. Capacity
was adjusted in line withdemand.
Available tonne kilometres (“ATK”), load factor and yield for Cathay Pacific and Dragonair cargo services
for the first half of 2013 were as follows:
ATK (million) Load factor (%) Yield
2013 2012 Change 2013 2012 Change Change
Cathay Pacific and Dragonair 6,607 6,729 -1.8% 62.4 64.3 -1.9%pt -3.3%