Cathay Pacific Airways was pushed into the red in the second half of 2001 as net profits for the year plunged 87%, following a damaging pilots' strike and the global industry downturn.
Full-year net profits came in at HK$657 million ($84 million) - sharply down on a record HK$5 billion for 2000.
The fall in earnings came despite a HK$452 million gain from the sale of shares in data network operator Equant in the first half. Without this, the carrier would barely have managed to stay in the black for the year. It has only once in the past 37 years suffered a full-year loss.
After sustaining healthy first-half profits, despite a market that started showing signs of weakness early in the year, Cathay fell into the red in the second half ended 31 December, with losses of HK$662 million.
Operating profits for the full year plunged 84% to HK$832 million, while revenue fell 12% to HK$30.43 billion.
Cathay carried 11.3 million passengers during the year - 5% fewer than in 2000, the most profitable year in its history.
Demand for business and first class travel was "particularly weak", it says and, together with steep discounting in many markets, brought down passenger yield by 5.2%.
Cargo yields fell 10.6%, as overcapacity in the freight market and a drop in exports to the USA hit hard. Cathay says cargo revenue was down by 15.6% during the year, to HK$7.27 billion, while freight carried fell 8.5% to 704,154t.
Chairman James Hughes-Hallett says Cathay has managed to rebuild from the pilots' strike, despite the fact that the dispute has not yet been settled. He says Cathay is prepared to expand once a recovery sets in, although the carrier is cautious about aircraft acquisitions.
Source: Flight International
