Cathay Pacific 2014 Profit Surges

reported a 20% gain in its 2014 net profit. Cathay Pacific's net profit for the year surged to 3.15 billion Hong Kong dollars ($405.7 million), versus a net profit of HK$2.62 billion, in the year-ago period. Analysts were expecting a profit of HK$3.44 billion. Earnings per share climbed to HK80.1 cents from HK66.6 cents. Its revenue for the year climbed 5.5% to HK$105.99 billion, compared to HK$100.48 billion. Passenger revenue for Cathay Pacific and Dragonair rose 5.4% to HK$75,734 million, while capacity surged 5.9%. The load factor rose by 1.1 percentage points to 83.3%, while the number of passengers carried climbed 5.5% to 31.6 million. Cathay Pacific Chairman John Slosar said: "It was encouraging to see an overall improvement in our business in 2014. That improvement has continued in the first quarter of this year and we are positive about the overall prospects for 2015. Demand in our cargo business continues to improve and is currently being helped by the congestion in sea ports on the West Coast of the United States. We continue to benefit from the lower net fuel prices. Our associates are also benefiting from these positive factors. While we face growing competition in our passenger business, which makes it harder to maintain yield, overall demand remains strong and the outlook is positive." Cathay Pacific shares rose 1.87% to close at $10.92 yesterday.