Cathay Pacific expects to post a net profit of around HK$2.3 billion ($293 million) for 2018, with signs that its transformation programme is delivering results.
The guidance represents a major turnaround on the HK$1.26 billion net loss posted in 2017.
“In 2018, the passenger business benefited from capacity growth, a focus on customer service and improved revenue management,” states the company in a stock exchange disclosure. “Load factors were sustained and yield improved despite competitive pressures. The cargo business was strong. Capacity, yield and load factors increased. The company’s transformation programme has had a positive impact.”
It cautions that the gudiance is based on a preliminary reviews of its unaudited group accounts, with the full result set to be announced in March.
Signs of improvement began to show in the first half of the year when it posted an operating profit of HK$697 million, reversing the HK$1.7 billion operating loss in the previous corresponding period.
Group revenue was up 15.7% to HK$53 billion, as revenue and yields on both the passenger and cargo segments improved significantly. Operating expenses or the period came in at HK$52 billion, where it grew at a smaller 8.2% rate.
Net loss also narrowed down to HK$263 million, compared to its 2017 interim net loss of HK$2.1 billion.