Cathay Pacific Airways Ltd.

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Company Background

Cathay Pacific Airways is Hong Kong's flag carrier, offering passenger and cargo services to around 200 cities in Asia, Europe, North America, Africa and Australia. It has a workforce of around 23,000.

The company was established in 1946 by Roy Farrell, an American, and Sydney de Kantzow, an Australian. Early on, it offered flights to Shanghai, Bangkok, Manila and Singapore.

Swire Pacific, a conglomerate engaged in the property development, beverage, marine services and trading businesses, has owned 45% of Cathay Pacific since 1948. Through the years, Swire has overseen the airline's expansion. In 2006, Cathay Pacific acquired Dragonair, a Hong Kong-based carrier that mainly flies within the Asia-Pacific region. Around the same time, it signed a strategic partnership with national flag carrier Air China.

Air China owns 29.99% of Cathay Pacific.

John Slosar, who also leads Swire, became chairman of Cathay Pacific in 2014. Amid the rise of low-cost carriers, he plans to boost the airline's competitiveness by capitalizing on a new runway at Hong Kong International Airport. The third runway, scheduled for completion in 2023, should allow the airport to handle 102 flights per hour, up from 68, and serve an additional 30 million passengers annually.

Business Summary

Cathay Pacific Airways Ltd. engages in airline operations. It operates through the Airline Business and Non-Airline Business segments. The Airline Business segment comprises of passenger and cargo operations. The Non-Airline Business segment includes airline catering, ground handling, and aircraft ramp handling services. The company was founded by Roy C. Farrell and Sydney H. de Kantzow on September 24, 1946 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018	HKD	USD
Revenue	111,060M	14,170.25M
Gross Profit	11,865M	1,513.86M
Operating income	4,583M	584.74M
Income before tax	3,243M	413.77M
Net income	2,345M	299.20M
EBITDA	14,385M	1,835.39M
Diluted EPS	0.59	0.07
Dividends Per Share	0.30	0.03
Total Assets	190,294M	24,305.21M
Total liabilities	126,355M	16,138.63M
Total equity	63,936M	8,166.19M
Operating cash flow	14,992M	1,912.84M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	105,991M	102,342M	92,751M	97,284M	111,060M
Gross Profit	11,285M	19,789M	15,659M	13,405M	11,865M
Operating income	5,744M	14,983M	8,070M	4,235M	4,583M
Income before tax	3,277M	5,500M	-1,826M	-580M	3,243M
Net income	3,150M	6,000M	-575M	-1,259M	2,345M
EBITDA	14,083M	23,842M	16,620M	13,589M	14,385M
Diluted EPS	0.80	1.52	-0.14	-0.32	0.59
Dividends Per Share	0.36	0.53	0.05	0.05	0.30
Total Assets	171,974M	172,827M	177,421M	188,378M	190,294M
Total liabilities	120,121M	124,760M	121,895M	127,106M	126,355M
Total equity	51,722M	47,927M	55,365M	61,101M	63,936M
Operating cash flow	10,506M	16,275M	6,530M	4,694M	14,992M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	13,668.00M	13,201.03M	11,948.66M	12,483.80M	14,170.25M
Gross Profit	1,455.24M	2,552.57M	2,017.27M	1,720.17M	1,513.86M
Operating income	740.71M	1,932.64M	1,039.61M	543.44M	584.74M
Income before tax	422.58M	709.44M	-235.23M	-74.42M	413.77M
Net income	406.20M	773.93M	-74.07M	-161.55M	299.20M
EBITDA	1,816.06M	3,075.36M	2,141.07M	1,743.78M	1,835.39M
Diluted EPS	0.10	0.19	-0.01	-0.04	0.07
Dividends Per Share	0.04	0.06	0.00	0.00	0.03
Total Assets	22,176.31M	22,299.82M	22,883.73M	24,097.57M	24,305.21M
Total liabilities	15,489.79M	16,097.75M	15,721.99M	16,259.57M	16,138.63M
Total equity	6,669.63M	6,184.00M	7,140.96M	7,816.12M	8,166.19M
Operating cash flow	1,354.79M	2,099.30M	841.22M	602.34M	1,912.84M

Valuation Measures

Dec 2018
PER	18.68
ROA	1.23%
ROE	3.75%
Operating margin	4.12%
Profit margin	2.11%

Key executives

Chief Executive Officer & Executive Director: Kin Wing Tang
COO, Director & Chief Service Delivery Officer: Gregory Thomas Forrest Hughes
Chief Financial Officer & Executive Director: Martin James Murray
Director-Service Delivery: Ying Wah Yau
Commercial Director: Lavinia Lau

Shareholders

Swire Pacific Ltd. (45.0%)
Air China Ltd. (29.9%)
Government of Qatar (9.9%)
The Vanguard Group, Inc. (0.4%)
Dimensional Fund Advisors LP (0.3%)
Norges Bank Investment Management (0.3%)
PineBridge Investments Asia Ltd. (0.1%)
ClearBridge Investments LLC (0.0%)
Amundi Asset Management SA (Investment Management) (0.0%)
JPMorgan Investment Management, Inc. (0.0%)

Contact Details

Website:http://cathaypacific.com
Address: Cathay Pacific City, 8 Scenic Road, Hong Kong International Airport, Hong Kong, Hong Kong
Phone: +852.2747.3333

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Competitors

Air China Limited Class H
Qantas Airways Limited
China Airlines Ltd.
China Eastern Airlines Corporation Limited Class H
Air New Zealand Limited
China Southern Airlines Company Limited Class H
El Al Israel Airlines Ltd
PT Garuda Indonesia (Persero) Tbk Class B
PAL Holdings, Inc.
Knafaim Holdings Ltd.
Cebu Air Inc.
Air Canada
JG Summit Holdings Inc.
Asia Aviation Public Co., Ltd.
Nippon Yusen Kabushiki Kaisha
Ryanair Holdings Plc

Last Updated on 15 Nov, 2019