Hong Kong: Cathay Pacific Airways said on Monday that it expects to see strong results for the first half of 2010 on improved premium passenger and cargo revenues, despite higher fuel prices.
“The trading position has been strong, particularly on the cargo side,” the Hong Kong flagship carrier said in a filing to the Hong Kong stock exchange. It said the improved cargo and premium passenger revenues have continued into this year.
“This means that, despite higher fuel prices, we expect strong financial results for the first half of 2010 and, if present trends continue, for the second half also,” the carrier said. It also cautioned investors that conditions could change rapidly in the airline industry.
Hong Kong’s dominant carrier had said earlier that it remained cautious about prospects for 2010 with revenues remaining at low levels and cost of fuel remaining high.
In March, the airline posted a forecast-beating second half year profit, its best half-year profit earnings in two years, signalling improving market conditions for Asian airlines.
The airline’s shares have risen 4.97% so far this year, outperforming a 6.6% drop in the blue-chip Hang Seng Index. Its shares edged up 0.26% on Monday.