Cathay Pacific targets 8.6% rise in passenger numbers

She said the major challenge this year would come from the high price of fuel, which jumped 44.1 per cent last year and added about 12.4 billion Hong Kong dollars (Bt49 billion) to the airline’s costs.
“The high fuel price has impacted our profitability, as fuel accounts for almost 40 per cent of our costs,” Yeung said.
However, Cathay is committed to investing in various initiatives to make the airline even stronger and prepare for future economic growth, she said.
“We need to be competitive and provide travellers with good value for money.”
She said the airline had launched many initiatives to tackle the high fuel cost, including the introduction of more fuel-efficient aircraft, ongoing fuel surcharges, and a fuel-hedging programme. About 20-30 per cent of Cathay’s fuel requirements are brought forward under the programme.
Yeung said Cathay Pacific earned profit of more than HK$14 billion in 2010. Last year, however, the airline faced a lot of challenges, including higher fuel prices, the economic downturn in Europe, a significant drop in cargo services, the tsunami in Japan and the massive flood in Thailand.
She said that despite the difficulties, Cathay had achieved good results last year with profit of HK$5.5 billion.
“The Asian market is still very positive for us,” she said.
Cathay Pacific posted 9.2-per-cent capacity growth in 2011, though its actual traffic growth was 14.2 per cent.
Yeung said this year’s economic situation was still volatile and the company was being very cautious.
Cathay Pacific Airways yesterday revealed its strategic focus for 2012, which aims to enhance its extensive network and extend its customer base, and to grow sustainably as a leading global airline.
“This year, Cathay Pacific and Dragonair are moving ahead with a number of initiatives that will make us even stronger and provide a better experience for our customers,” Yeung said.
“For example, we are taking delivery of 19 new aircraft in 2012 and introducing new products including a premium economy class and new long-haul economy-class seats, while continuing with the roll-out of our acclaimed new business class to ensure the best customer experience.
“We are expanding our network and adding frequencies in Asia to cater to the demand.
“In addition, the group has always focused on corporate social responsibility, and in Thailand we are enhancing our efforts in this area,” Yeung said.
To meet strong passenger demand, Cathay Pacific is boosting flight frequencies and its wholly owned subsidiary Dragonair is adding new routes to its network.
Cathay Pacific recently increased the frequency of its service between Bangkok and Hong Kong from five to six flights daily, so the airline offers the most flights between the two cities.
Dragonair will also provide a seasonal scheduled service to Chiang Mai with four flights a week running from July 1 to the end of September and a scheduled service to Jeju in South Korea with three flights a week starting from May 1.
Dragonair will also resume services to Taichung, Taiwan, with two flights a day starting from May 14.