Cathay back to profit after 2008?s record loss

Fuel hedging, cost-cutting and the sale of shares in an aircraft maintenance company helped Cathay Pacific Group return from its biggest-ever loss the previous year to profit in 2009.  The group, which comprises Asia?s third-largest airline and Dragonair, booked a full-year profit HK$4.7 billion (US$605 million) compared with 2008?s record HK$8.6 billion loss, largely the result of fuel hedging bets going the wrong way.  While the group had earlier reported a steady pick-up in passenger numbers, both carriers ended the year carrying 24.6 million, 1.6 per cent fewer than the previous year. 

Capacity fell by 3.7 per cent from 2008, which helped push load factor up 1.7 per cent to 80.5 per cent. There was a sharper drop in passenger revenue ? down 20.8 per cent to about HK$46 million, reflecting substantial reductions in premium traffic and in economy class yield, though economy class passenger numbers held up well, said the airline.  Still the group managed to reverse 2008?s HK$1.4 billion loss from its core airline business to produce a profit of HK$285 million.