HONG KONG - Cathay Pacific Airways, which posted a 38 per cent decline in second-half profit because of higher fuel prices, is seeking Government permission to extend a ticket surcharge for the second time this year.
The Hong Kong carrier, Asia's second-largest by value, wanted to extend the levy after
March 31, chief operating officer Tony Tyler said yesterday.
He declined to say if Cathay Pacific was seeking to raise the fee from HK$383 ($76) for each passenger on long-haul flights and HK$93 ($18.50) on regional flights. "We're going to have to learn to live with surcharges," he said.
Higher fuel prices are preventing Cathay Pacific, Singapore Airlines and other Asian carriers from turning higher passenger numbers into bigger profits.
Cathay Pacific spent HK$8.9 billion on fuel in the second half, up 63 per cent from a year earlier. The figure was derived by subtracting first-half fuel costs from the full-year number.
Surcharges covered less than half of the increase in costs last year, Tyler said. Fuel expenses jumped 67 per cent to HK$15.6 billion last year and were Cathay Pacific's single biggest cost, making up 33 per cent of the total.
Stella Tse, a spokeswoman at Hong Kong's Civil Aviation Department, declined to say if the regulator had received Cathay Pacific's application.
The airline's 2005 profit fell 25 per cent to HK$3.3 billion. Sales rose 19 per cent to a record HK$50.9 billion. Passenger numbers rose 13 per cent to a record 15.4 million last year and cargo volume grew 15 per cent to 1.12 million tonnes, also a record.
- BLOOMBERG
