Hong Kong – Cost cutting efforts appeared to have paid dividends for Cathay Pacific after the airline announced a return to profit for 2009.
After making a loss in 2008, Cathay Pacific has now announced a £405million net profit, with ‘fuel hedging’ playing a major part in offsetting a drop in revenue of around 25 per cent.
However, the airline remains wary, believing the economic slump is still playing a major part in airline ticket sales. More passengers flew in the second half of the year, but the situation remains fragile, not least because of rising fuel costs.
It has been estimated that airlines lost around $11billion last year overall, so this success is likely to be a source of much pride for Cathay Pacific.