Cathay Pacific 2012 Net Profit Plunges 83%

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.

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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.

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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.

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