Hong Kong-based Cathay Pacific Airways on Wednesday announced a record high net profit of 7,023 million HK dollars (900 million U.S. dollars) for 2007, which was 71.8 percent higher compared with the previous year.
The annual results, for the first time included a full year's contribution from wholly-owned subsidiary Dragonair.
"We are very pleased with our 2007 result, which was driven largely by consistently strong passenger demand," said group chairman Christopher Pratt.
Pratt said he believed the synergy between Cathay Pacific and Dragonair had helped further develop Hong Kong's role as Asia's leading international aviation hub for both passenger and cargo traffic.
Cathay Pacific carried a record 17.8 million passengers in 2007,up 6.2 percent year on year, thanks to the high passenger demand throughout the year.
There was a further expansion to the freighter fleet and the increased capacity helped Cathay Pacific carry a record 1,353,000 tons of freight, the company said.
High fuel prices continued to have a significant impact on the airline, particularly in the second half of the year, and the fuel bill rose by 21.8 percent to 24,624 million Hong Kong dollars (3, 157 million U.S. dollars), the company said.
The fuel bill was partially offset by fuel surcharges. Unit cost excluding fuel fell slightly as the airline tried to increase productivity and reduce controllable overheads.
Pratt said the he expected more competition and continued impacts from high and volatile fuel prices, adding that any slowdown in economic activity would have an impact on the group's business, too.