The airline company attributed the earnings plunge to the high price of jet fuel, pressure on passenger yields, weak air cargo demand, the euro zone crisis, and an increasingly competitive environment.
Cargo revenue in 2012 was HKD2.45 billion, a decrease of 5.5 percent compared to 2011. Capacity was down by 3.1 percent while the cargo load factor dropped by 3 percentage points to 64.2 percent.
Cathay Pacific Airways and sister airline Dragonair’s cargo business was affected by weak demand in major markets, particularly from Asia to Europe, according to a written company statement.
Saying 2012 was “a challenging year for the aviation industry generally,” the airline still continued with its major investments in new aircraft and new products. In February 2013, it opened its own cargo terminal at the Hong Kong International Airport.
“The Cathay Pacific Group operates in a volatile and challenging industry. 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 Cathay Pacific chairman Christopher Pratt.