In an environment marked by intense competition, rising fuel prices and a stronger U.S. dollar, Cathay Pacific reported an attributable profit of HK$2.3bn (€260m) for 2018, compared with a loss of HK$1.2bn for 2017. Revenue was up 14.2%, at HK$111bn.

According to Cathay Pacific CEO John Slosar, overcapacity in passenger markets resulted in intense competition, particularly with carriers from Mainland China, putting pressure on market yields on key routes particularly in the second half of the year. Congestion at Hong Kong International Airport and air traffic constraints in Greater China also imposed costs on the group.

On the positive side, load factors were sustained and yield improved despite competitive pressures. The cargo business was strong while capacity, yield and load factors all increased.

Passenger revenue in 2018 was HK$73.1bn (+10.1%). Capacity increased by 3.5%, reflecting the introduction of new routes and increased frequencies on existing routes. The load factor decreased by 0.3 percentage points, to 84.1%.

The cargo business benefited from robust demand — group revenue increased by 18.5%, to HK$28.3bn.