Cathay Pacific's net profit soars six-fold

Hong Kong's Cathay Pacific Airways said today its net profit in 2002 soared six-fold over the previous year.

Hong Kong's Cathay Pacific Airways said today its net profit in 2002 soared six-fold over the previous year.

It said the rise was due to increased passenger and cargo demand and a decline in operating costs.

The net profit of $510 million (€514.3 million) was up from $657 million in 2001, when the industry was savaged by a global economic slowdown and the impact of the September 11th terrorist attacks.

Revenue rose by 8.7 per cent to $4.3 billion in 2002.Mr James Hughes-Hallett, the airline's chairman, described 2002 as "very successful" but he was cautious about prospects this year.

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"In considering the outlook for the coming year we are conscious of the fact that it will be hard to repeat the performance of 2002 in the context of the current global political and economic uncertainties," he said in a statement.

Mr Hughes-Hallett said later in a press conference that concerns over the situation in the Middle East and over oil prices will be "short-term challenges".

The airline, which is majority-owned by British conglomerate Swire Pacific, said that overall passenger loads reached record levels last year.

However, first and business class demand remained weak, contributing to a 0.7 per cent drop in profit yield per passenger.