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Cathay Pacific 2012 Net Profit Plunges 83%

Wednesday, 13 Mar 2013 | 2:01 AM ET
Photo: Jewel Samad | AFP | Getty Images

Cathay Pacific Airways, the world's largest international air cargo carrier, returned to profit in the second half of 2012 as a result of higher cargo volume and cost-cutting measures.

(Read More: FAA Approves Boeing Plan to Fix 787 Batteries)

The airline reported net profit of HK$916 million ($118 million) for the year ended December, down 83 percent from 2011, and narrowly missing an average forecast of HK$1.01 billion profit from 15 analysts polled by Thomson Reuters.

Airlines Soar to Rare Profits
The airline index is up 45 percent in the past one year, and up 20 percent so far this year alone, reports CNBC's Phil LeBeau.

Cathay reversed a first-half loss of HK$935 million but its yearly figure was substantially lower than the 2011 profit of HK$5.5 billion due to high fuel costs and an uncertain global economy, which depressed passenger and cargo demand compared with the previous year.

For the second half Of 2012, Cathay made a net profit of HK$1.85 billion versus HK$2.7 billion a year ago, based on Reuters calculations.

(Read More: Will AirAsia Be a Game Changer for Indian Aviation?)

Controlled by property conglomerate Swire Pacific, Cathay is also 30 percent owned by national flag carrier Air China.

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