CATHAY PAC AIR(00293)2023-08-24 08:40Financial Performance - The group reported a revenue of HKD 43,593 million for the six months ended June 30, 2023, representing a 135.0% increase compared to HKD 18,551 million in the same period of 2022[5]. - Cathay Pacific's attributable profit to shareholders was HKD 4,268 million, a significant turnaround from a loss of HKD 4,999 million in the previous year[5]. - The basic earnings per share increased to HKD 61.5, compared to a loss of HKD 82.3 in the same period last year, marking a 143.8% improvement[5]. - Cathay Pacific recorded a profit of HKD 4.26 billion in the first half of 2023, compared to a loss of HKD 4.99 billion in the same period of 2022[8]. - The net profit after tax for the first half of 2023 was HKD 333 million, a recovery from a loss of HKD 824 million in the same period last year[21]. - The company reported a profit of HKD 4,268 million for the six months ended June 30, 2023, compared to a loss of HKD 4,999 million in the same period of 2022, indicating a turnaround in performance[47]. - The total comprehensive income for the period was HKD 4,268 million, compared to a loss of HKD 4,999 million in the prior year[35]. - The company reported a significant increase in employee expenses to HKD 6,612 million from HKD 5,057 million, an increase of 31%[43]. Operational Metrics - The group’s available tonne-kilometers (ATK) increased by 211.2% to 9,628 million, while available seat-kilometers (ASK) surged by 1,111.3% to 37,053 million[6]. - The passenger load factor improved to 87.2%, up by 28.0 percentage points from 59.2% in the previous year[6]. - The average daily passenger count reached 43,180, up 2,233.1% compared to the same period in 2022[9]. - The total number of passengers carried in the first half of 2023 reached 7.8 million, averaging 43,184 passengers per day, a 2,233.1% increase compared to the same period in 2022[12]. - The average load factor for Hong Kong Express in the first half of 2023 was 85.5%, an increase of 67 percentage points compared to the same period in 2022[20]. - The company operated flights to 70 destinations with a capacity reaching 50% of pre-pandemic levels by March 2023[12]. Cargo Operations - Cargo revenue tonne-kilometers increased by 83.0% to 3,886 million, reflecting strong demand in the air freight sector[6]. - Cargo volume increased by 83% year-on-year, with total cargo tonnage rising by 23.8% to 651,000 tons[8]. - Cargo revenue for the first half of 2023 was HKD 10.74 billion, a decrease of 11.6% year-on-year[9]. - The cargo load factor decreased to 63.8% from 75.8% in the first half of 2022[8]. - The cargo revenue yield decreased by 51.7% to HKD 2.76 per ton-kilometer[8]. - Available cargo tonne-kilometers increased by 117.6% to 6,095 million in the first half of 2023, while the load factor decreased by 12.0 percentage points to 63.8%[18]. Fleet and Staff - The fleet consisted of 225 aircraft, with 42 new passenger aircraft expected to join in the coming years[4]. - The average age of the fleet was 11.0 years, slightly down from 11.3 years in the previous year, indicating ongoing fleet modernization efforts[6]. - The group employed over 21,900 staff globally, with approximately 18,100 based in Hong Kong as of June 30, 2023[4]. - The average age of the fleet is 11.0 years, with a total of 136 aircraft owned and 28 leased as of June 2023[7]. Financial Stability - The net debt decreased by 24.2% to HKD 44,565 million from HKD 58,829 million, indicating improved financial stability[5]. - The group’s available unrestricted cash amounted to HKD 28,899 million, including HKD 24,099 million in cash and HKD 4,913 million in undrawn credit facilities[38]. - The debt-to-equity ratio improved from 0.71 times to 0.50 times, indicating a stronger balance sheet position[38]. - The company has available unrestricted cash of HKD 28,896 million as of June 30, 2023, compared to HKD 27,188 million at the end of 2022, indicating an increase of about 6.3%[74]. Future Plans and Strategies - The group aims to restore its passenger capacity to 70% of pre-pandemic levels by the end of 2023, serving 80 destinations[10]. - The group expects to receive five new aircraft in the second half of 2023, following the delivery of five new aircraft in the first half[7]. - The company plans to replace eight Airbus A300-600F freighters with eight second-hand Airbus A330F freighters by 2024[7]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[43]. - The company is collaborating with the National Energy Investment Group to promote the sustainable aviation fuel supply chain in mainland China[27]. Awards and Recognition - Cathay Pacific's premium customer service received 12 awards, including the "Excellence in Service Award" at the 2022 Quality Customer Service Awards[16]. - Cathay Pacific was recognized as one of the top 25 airlines globally by AirlineRatings.com, ranking 9th[17]. - Cathay Pacific received multiple awards in 2023, including recognition for its commitment to sustainable tourism and diversity[30]. Sustainability Initiatives - Cathay Pacific has reduced single-use plastic usage by 56% compared to 2018 levels and is establishing new plastic and waste reduction targets[28]. - The company processed 28 million items of laundry in the first half of 2023, a significant increase from 12 million items in the same period of 2022[25]. - The company is set to host the International Cargo Symposium in March 2024, emphasizing its commitment to the air cargo sector[18]. Corporate Governance and Compliance - The company complied with all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules during the reporting period[92]. - The company acknowledges potential risks and uncertainties affecting future performance, including economic conditions and geopolitical factors[97]. - The company emphasizes that forward-looking statements are based on various assumptions and may not guarantee future results[97].