Dubai: Cathay Pacific Airways expects to make its largest profit of all time this year, generating almost HK$13 billion (Dh6.13 billion), John Slosar, Chief Operating Officer (COO) said recently.
He cited various reasons for the Hong Kong-based airline's outstanding performance this year, having recently released a Hong Kong Stock Exchange notice with the businesses' projected profits.
"We expect to make a profit of not less than HK$12.5 billion, which would be for Cathay the biggest profit of all time," Slosar said.
He attributed a 30 per cent tonnage increase in the carrier's air cargo sales during the first half of the year as one major contributing factor to its 2010 success.
"Cargo this year for us has been very strong," he said. "In the first half of 2009 cargo was very bad, but in the second half it picked up and the load carried on into 2010."
An increase in demand for air cargo and insufficient supply also contributed to cementing Cathay Pacific's place as one of the top five worldwide cargo carriers.
Stellar performance
However, Slosar merely reinforced the findings of the Swire Pacific Limited 2010 Interim Report, which says both the passenger and cargo businesses of Cathay Pacific and Dragonair performed well, with revenues continuing to increase despite uncertainty over the stability of the global economy.
Swire Pacific is the Hong Kong arm of the Swire Group, a transnational corporation headquartered in London, to which Cathay Pacific belongs. Slosar will take over as CEO of Cathay Pacific Airways next April when current CEO Tony Tyler steps down to head the International Air Transport Association (IATA).
As the carrier's new leader he intends to focus on further developing successful products and services for passengers.
"We've built a reputation for product and service and one of my goals would be to further develop that," he said.
Slosar will oversee two brand new products and services in the immediate future as Cathay Pacific rolls out its new business class cabins with wider seats.
The business class upgrade will initially be introduced next March on the Airbus A330-300 aircraft flying the Sydney route. Slosar will also visit the UAE's capital next year as the airline launches its two new routes to Abu Dhabi and Chicago set to commence next June.
"In the 1980s we launched flights to Abu Dhabi, but unfortunately we left and are now pleased to be going back," he said.
COO cites 30% rise in carrier's air cargo sales as major factor
Airline to pay pilots reduced damages
Cathay Pacific Airways, Hong Kong's biggest carrier, won a reduction in damages for defamation it must pay a group of pilots fired in 2001 to HK$700,000 (Dh330,500) each.
The city's Court of Appeal also overturned a wrongful dismissal judgment, sparing the carrier from having to pay the pilots a month's salary. Judges Frank Stock, Susan Kwan and Johnson Lam further set aside the lower court's award of costs to the pilots, and said they should pay some of Cathay's costs.
The almost decade-long case centres on 18 pilots who were among 49 fired by Cathay on a single day in 2001.
— Bloomberg
