Cathay Pacific Airways: Trading statement
10-May-2010 The financial results of Cathay Pacific Airways Limited (“Cathay Pacific” or “we”) for 2009 were announced in early March 2010.
The purpose of this announcement is to provide updated information about the trading position of Cathay Pacific.
The Previous Statement In commenting on prospects in the annual results announcement of Cathay Pacific for 2009, the chairman of Cathay Pacific said the following:
"While we welcomed the improvement in business in the latter part of 2009, we remain cautious about the prospects for 2010. Revenues and yields remain below levels experienced prior to the recent downturn and there has not yet been a sustained improvement in premium passenger demand which accounts for a high proportion of total revenues. There are concerns that the adverse changes which we have seen in the pattern of passenger and freight demand could be structural rather than cyclical.
In addition, the cost of fuel, which rose steadily from the middle of 2009, remains stubbornly high and threatens to undermine profitability."
The Current Position Since the statement referred to above was made, the trading position has been strong, particularly on the cargo side. The improved cargo and premium passenger revenues which became apparent in the last quarter of 2009 have continued into this year.
This means that, despite higher fuel prices, we expect strong financial results for the first half of 2010 and, if present trends continue, for the second half also. That said, conditions can change very rapidly in the airline industry. Our results would be adversely affected, and very quickly so, by a significant increase in fuel prices or any return to the recessionary economic conditions of 2008 and much of 2009.
Investors are advised to exercise caution in dealing in shares of Cathay Pacific.
This announcement is issued by Cathay Pacific pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Directors of Cathay Pacific
As at the date of this announcement, the Directors of Cathay Pacific are:
Executive Directors: Christopher Pratt (Chairman), James E. Hughes-Hallett, Ian Shiu, John Slosar and Tony Tyler;
Non-Executive Directors: Cai Jianjiang, Philip Chen, Fan Cheng, James W.J. Hughes-Hallett, Kong Dong, Peter Kilgour, Robert Woods and Zhang Lan; and
Independent Non-Executive Directors: Irene Lee, Jack So, Tung Chee Chen and Peter Wong.
By Order of the Board
Cathay Pacific Airways Limited
David Fu
Company Secretary