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Mar 8, 06, 7:05 am
Cathay's Net Falls 25%, Hurt by Fuel-Price Surge
By JEFFREY NG
March 8, 2006 6:44 a.m.
HONG KONG -- Hong Kong's Cathay Pacific Airways said Wednesday its 2005 net profit fell 25% from a year earlier, dragged lower by record-high jet fuel prices that offset strong growth in passenger demand.
Net profit for the year ended Dec. 31, 2005, was HK$3.3 billion (US$425.2 million), down from HK$4.42 billion in 2004. Revenue rose 19% to HK$50.91 billion from HK$42.76 billion.
Hong Kong's dominant carrier recommended a final dividend of 28 Hong Kong cents, down from 45 Hong Kong cents the previous year.
"Demand was strong in 2005 and we remain optimistic about our future even though our 2006 results are likely to remain heavily dependent on fuel prices," said Christopher Pratt, the company's new chairman. Mr. Pratt took over from David Turnbull, who unexpectedly resigned in November.
By JEFFREY NG
March 8, 2006 6:44 a.m.
HONG KONG -- Hong Kong's Cathay Pacific Airways said Wednesday its 2005 net profit fell 25% from a year earlier, dragged lower by record-high jet fuel prices that offset strong growth in passenger demand.
Net profit for the year ended Dec. 31, 2005, was HK$3.3 billion (US$425.2 million), down from HK$4.42 billion in 2004. Revenue rose 19% to HK$50.91 billion from HK$42.76 billion.
Hong Kong's dominant carrier recommended a final dividend of 28 Hong Kong cents, down from 45 Hong Kong cents the previous year.
"Demand was strong in 2005 and we remain optimistic about our future even though our 2006 results are likely to remain heavily dependent on fuel prices," said Christopher Pratt, the company's new chairman. Mr. Pratt took over from David Turnbull, who unexpectedly resigned in November.