Cathay Pacific Airways Limited has unveiled its financial results for the year 2023, indicating a significant shift from previous losses to a sizeable profit and a substantial increase in revenue. The airline, which serves as Hong Kong’s flagship carrier, reported an 85.1% jump in revenue to HK$94,485 million from HK$51,036 million in 2022. It also marked an impressive shift to a profit of HK$9,789 million for its shareholders, contrasting sharply with the loss of HK$6,623 million recorded the previous year.
The remarkable financial performance was partially credited to a substantial growth in operational activities, evidenced by increases of 326.8% in available seat kilometres (ASK) and 396.8% in revenue passenger kilometres (RPK). The airline also mentioned an improvement in the passenger load factor by 12.1 percentage points, reaching 85.7%, and a 541.4% hike in the number of revenue passengers. Nevertheless, a decline in passenger yield by 17.7% was noted, suggesting changes in the airline ticket pricing landscape.
In the cargo sector, there was observed a 48.5% decrease in cargo revenue per available tonne kilometre (AFTK), denoting a significant drop in prices. Conversely, the cargo load factor went down by 8.6 percentage points to 62.0%, indicating a downturn in this area of operations.
Additionally, the airline reported a 116.3% rise in greenhouse gas (GHG) emissions, in line with the increased scale of operations. However, GHG emissions per available tonne kilometre (ATK) saw a more significant increase of 243.8%, pointing to a higher emissions intensity.
From a financial position perspective, Cathay Pacific saw a 5.9% decrease in funds attributable to its shareholders, totaling HK$60,026 million, and a 10.3% decline in net borrowings to HK$52,764 million. There was also a 26.5% reduction in available unrestricted liquidity to HK$19,985 million, highlighting the financial volatility characteristic of the airline industry.
The company expressed a positive outlook on its future, emphasising the strength of its current financial standing and the availability of loan and debt markets as sources of financing for upcoming fleet investments.
The release from Cathay Pacific points to a strong recovery in its operations and finances, reflecting broader challenges and successes in the aviation industry against the backdrop of recent global disruptions.
