Cathay Pacific says 2012 net profit slumps 83.3%

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HONG KONG, China—Cathay Pacific said Wednesday 2012 net profit plunged 83.3 percent, as the Hong Kong flag carrier was hit by persistently high fuel prices and weak air cargo demand.

The airline said profit stood at HK$916 million ($118 million), down from the HK$5.5 billion it recorded in 2011. Revenue rose 1.0 percent to HK$99.4 billion from HK$98.4 billion in 2011.

“Economic uncertainty, particularly in the eurozone countries, and an increasingly competitive environment added to the difficulties,” chairman Christopher Pratt said in a statement to the Hong Kong stock exchange.

“It was a challenging year for the aviation industry generally.”

Cathay said it carried a total of 29.0 million passengers in 2012, a 5.0-percent rise year on year, but its premium class business was affected by travel restrictions imposed by companies.

“The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft,” Pratt said.

He added that the cost of fuel, which accounts for 41.1 percent of total operation costs, rose 0.8 percent year-on-year in 2012.

The blue-chip Asian airline in August posted a first-half year net loss of HK$935 million.

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  • Iggy Ramirez

    Due to plummeting profits, Cathay Pacific now offers on board blow jobs and hand jobs to supplement revenues.

    Anyone taking a long-haul flight can check-in online at least 24 hours before the trip. There, you could have a seat of your own choosing. You could also choose to include extra services (emphasis on extra). Hand jobs cost $95 and blow jobs cost $180. You could pay by paypal, Visa, MasterCard, or American Express. There are only limited slots available for this service as jobs can take about an average of 20 minutes and with a limited number of staff on board.

    Loyalty program members are given the priority. A blow job can cost 4,500 Asia miles and a hand job can cost 2,500 Asia miles.

    In an interview with Cathay Pacific chairman Christopher Pratt, he said he avails himself of this service every time he flies on long-haul flights. “It’s actually pretty good. Our flight attendants have mastered this art and this is an achievement we could be truly proud of. This tradition is unique to Cathay Pacific and we assure our loyal customers that it will only just get better. Our flight attendants are so good, I come so often! This is what I call coming close to heaven” Pratt said with a genuine joy on his face.

  • MrRead

    HK chinese are RUDE.  In fact, the rudest people on earth, more so than the French.

  • http://profile.yahoo.com/M652BAE6SBKLQWOSYF5Y2UJVIM pedro

    From my personal opinion(as one whom frequently travel taking Cathay fligths)…your service,attitude of your staff has fallen from the cliff compared to 4 yrs ago.

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