Cathay Pacific reports strong first-half profits

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The airline completes its recovery from a SARS-hit 2003 but remains wary of rising fuel prices

Cathay Pacific Airways reported a first-half profit attributable to shareholders of HK$1,771m ($227m) in its 2004 interim results on Wednesday, a dramatic improvement on the airline's HK$1,241m ($159m) loss recorded during the SARS-affected first half of 2003.

Cathay Pacific said an improving world economy and a strong recovery in Hong Kong helped grow both passenger and cargo operations, leading to the airline introducing new services and additional frequencies.

Turnover was sharply higher at HK$18,185m ($2,331m) compared to HK$12,275 ($1,574m) during the same six-month period last year, while passengers carried increased by 59.3% to 6.4 million.

Higher revenues were partially offset by a sharp rise in the price of fuel, which was on average 16.9% higher than in the same period last year, Cathay said. Fuel accounted for 21.8% of the airline's operating costs during the period.

Cathay Pacific Chairman James Hughes-Hallett said: ?Prospects for the traditionally stronger second half of the year appear to be good, although the high fuel price remains a concern, which if sustained, could dampen global economic growth and the demand for air travel. We remain optimistic over our future and will continue to develop our network, strengthen Hong Kong as a global aviation hub and focus on delivering superior value to customers.?