Hong Kong-based Cathay Pacific reported 2012 profit totaling HK$916 million (about US$118.1 million), a decline of 83.3 percent from $709.0 million in 2011, while annual turnover rose 1.0 percent to $12.8 billion.
Cargo revenue in 2012 was $3.2 billion, dropping 5.5 percent compared to 2011. Capacity was down 3.1 percent and the cargo load factor dropped by 3 percentage points to 64.2 percent. The airlines’ cargo business was impacted by weak demand in major markets, particularly from Asia to Europe, as well as Hong Kong and mainland China, the company said in a written statement.
The airline continued with its major investments in new aircraft and new products, and opened its own cargo terminal at Hong Kong International Airport in February 2013.
“The cost of fuel remains the biggest challenge, particularly for an airline such as ours where long-haul operations form a significant part of our total operations,” said Christopher Pratt, Cathay Pacific chairman.