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Cathay Pacific announces HK$2.3 billion net profit for 2018 – a huge turnaround from previous year
- Airline suffered first back-to-back loss in its history in 2017
- Company is due to reveal full set of 2018 results in March
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Embattled Cathay Pacific Airways said on Wednesday it expects to announce a net profit of HK$2.3 billion (US$295 million) for 2018 – a huge turnaround from its HK$1.25 billion loss the previous year.
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Hong Kong’s biggest airline credited the upturn in fortunes to its transformation programme – in its final of three years – which aimed to revive the business by cutting HK$4 billion of expenses through investment in technology and fuel-efficient aircraft. It also launched a long-haul route to Washington in September.
“The transformation programme has had a positive impact,” Cathay said in a statement to the Hong Kong stock exchange.
It was only the second time Cathay had made an unscheduled profit performance announcement since it became a publicly traded company in 1986.
The other time was in July 2008 when the airline warned soaring fuel prices meant it could not accurately judge its financial results.
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Hong Kong listed companies are required to alert or warn shareholders of any significant changes in profits or losses prior to scheduled announcements.
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