HONG KONG: Cathay Pacific Airways Ltd, Asia's No.5 carrier by market value, posted an 86 rise in second-half earnings, beating analyst forecasts, but it expressed caution over high-flying oil prices.
Cathay reported a net profit of HK$7.2 billion ($924.5 million) for the second half of last year, nearly double HK$3.88 billion a year earlier, based on Reuters' calculations using Cathay's annual results.
The second-half results beat a consensus earnings forecast of HK$5.64 billion from 14 analysts polled by Thomson Reuters I/B/E/S.
Full-year earnings surged to HK$14.05 billion on robust traffic growth, its best-ever annual profit, on robust traffic and gains from asset disposals. The company had forecast a net profit of at least HK$12.5 billion for 2010, compared with HK$4.69 billion posted for 2009.
Global airline net earnings could be halved this year as rising costs, especially oil prices, offset growing demand, industry body The International Air Transport Association (IATA) said last week.
Shares of Cathay, like other airlines, have been under pressure since the beginning of the year. The stock had lost about 13 percent this year, underperforming the benchmark Hang Seng Index' 3.7 percent rise in the same period.
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