Cathay Pacific's 2007 profit soars 72 percent
HONG KONG, March 5 (Reuters) - Cathay Pacific Airways Ltd (0293.HK), Asia's No. 3 carrier, posted a record-breaking 72 percent rise in annual net profit on Wednesday on surging passenger demand and higher ticket prices, but U.S. recession woes overshadow its outlook for 2008.
Cathay, Asia's largest airline by market value after Air China (601111.SS) (0753.HK) and Singapore Airlines (SIAL.SI), posted net profit of HK$7.02 billion ($901.9 million) for the year ended Dec. 31, compared with HK$4.09 billion year ago.
That result beat an average forecast of HK$5.93 billion by 11 analysts, according to Reuters Estimates.
Cathay is battling a gloomy outlook in 2008 as analysts predict the U.S. credit crisis will cause a slowdown in global travel as companies and consumers cut spending. Last month, The International Air Transport Association (IATA) said global air passenger traffic growth slowed to 4.3 percent in January from 6.7 percent the previous month, and warned of turbulence ahead.
Shares in Cathay edged up 0.12 percent at HK$16.22 in morning trade on Wednesday ahead of the results announcement. The firm's stock rose roughly 6.4 percent in 2007, underperforming the 39 percent leap on the benchmark Hang Seng Index .HSI. (Reporting by Joseph Chaney; Editing by Lincoln Feast)
