Hong Kong airline Cathay Pacific has announced a 20 per cent rise annual profits despite a slow start to 2014.
Net profit for last year stood at HK$3.15 billion ($406 million), 20.2 percent higher than the previous year's figure of $2.62 billion, it said in a filing to the Hong Kong stock exchange.
Its full-year revenue rose 5.5% to HK$105.99 billion from HK$100.48 billion on continued growth in demand for air traffic.
Cathay said the group’s business was affected by high fuel prices, reduced passenger yield and continued weakness and over-capacity in the air cargo market.
“While we face growing competition in our passenger business, which makes it harder to maintain yield, overall demand remains strong and the outlook is positive,” said Cathay chairman John Slosar.
The Group invested heavily in its fleet, taking delivery of 16 new aircraft in 2014: nine Boeing 777-300ER aircraft, five Airbus A330-300 aircraft and (for Dragonair) two Airbus A321-200 aircraft.
Six Boeing 747-400 passenger aircraft were retired during the period. In 2013, it agreed to sell its six Boeing 747-400F freighters back to The Boeing Company.