Cathay Pacific 293

Re: Cathay Pacific 293

Postby gladiator » Mon Aug 04, 2008 3:19 pm

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OUTLOOK - Cathay Pacific Airways H1 net profit seen down up to 80 pct


HONG KONG (XFN-ASIA) - Analysts' forecasts of first-half net profit of Cathay Pacific Airways Ltd range from 509 mln to 1.53 bln hkd, down as much as 80 pct from 2.58 bln hkd a year earlier.

They said the Hong Kong flag carrier's results -- due to be published on Wednesday -- will be battered by high fuel costs and a 60 mln usd price-fixing penalty levied by US authorities.

Cathay warned last month that its financial results this year--including the first half to June --would be disappointing due to the high price of jet fuel. The airline has said its fuel costs for the first half were 60 pct higher than the year before.

This was only the second profit warning Cathay has ever issued. The first came after severe acute respiratory syndrome (SARS) attacked Asia during 2003.

"We expect Cathay Pacific's interim results to demonstrate the severe headwinds that all airlines are currently facing," said Citigroup.

The US bank has by far the most pessimistic view of Cathay's performance, estimating its first half profit at 509 mln hkd, down 80 pct.

Citigroup assumes that Cathay will fully recognize in its interim results the 60 mln fine imposed by the US Department of Justice following an air cargo price-fixing probe.

Macquarie expects Cathay to report a 1.03 bln net profit, including the the US fine, down 60 pct year-on-year.

"Earnings risks remain to the downside," the Australian bank said in its second-half outlook for Cathay.

Merrill Lynch estimates that Cathay's interim net profit, including the fine, will come in at 1.20 bln hkd, down 52 pct from a year earlier.

The US house is also bearish on Cathay's second-half performance due to soaring fuel prices.

"We are of the view that the second half will likely be worse [than the first] despite being seasonally stronger," Merrill said.

It predicted the carrier will only just break even in the second half if the current 171 usd per barrel price of jet fuel holds up for the entire period.

HSBC gave the most optimistic estimate of Cathay's interim results -- a net profit of 1.53 bln hkd, down 41 pct.

The estimate assumes an average price of 150 usd per barrel for jet fuel during the first half and full recognition of the US fine.

HSBC also projects a 49 pct decline in full-year net earnings, assuming that the fuel price will stay around 150 usd per barrel through 2010.
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Re: Cathay Pacific 293

Postby winston » Wed Aug 06, 2008 2:32 pm

Cathay Pacific posts first loss in 5 years

Cathay Pacific Airways (0293), Asia's third-biggest carrier by market value, unexpectedly posted its first half-year loss in five years after fuel costs almost doubled and it set aside funds to cover a US antitrust fine.

The loss was HK$663 million 16.8 Hong Kong cents a share, compared with a net income of HK$2.58 billion, or 65.6 Hong Kong cents, a year earlier, the carrier said. The airline made a HK$468 million provision for the US fine.

Cathay boosted first-half sales 23 percent to HK$42.4 billion. It was expected to post a profit of HK$1.03 billion, according to a Bloomberg News survey of three analysts.
The airline made an operating loss before one-time items of HK$136 million, compared with an operating profit of HK$3.2 billion a year earlier.

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Re: Cathay Pacific 293

Postby winston » Thu Aug 07, 2008 12:35 pm

BROKER CALL- HK Cathay Pacific's target price, EPS estimates cut- Morgan Stanley

HONG KONG (XFN-ASIA) - Morgan Stanley cut its target price for Cathay Pacific to 12 hkd from 13 hkd and downgraded its EPS forecasts for 2008 and 2009 after the company's
worse-than-expected first half to June results.

It reiterated its "underweight" rating on Cathay Pacific.

"We see more near-term negative catalysts for Cathay and the net EPS loss reported for the first half could drive the share price to 12 hkd," the brokerage said.

Cathay reported a first half loss of 0.17 hkd per share compared to EPS of 0.66 hkd a year earlier, significantly below the brokerage's estimate of 0.26 hkd per share. The airline had an operating loss of 522 mln hkd, while the bank had seen it making an operating profit of 2.0 bln hkd.

" In view of the net loss in the first half, we are cutting our EPS estimates to breakeven for 2008 and 2009, and we expect a token dividend per share of 0.10 hkd for the next two years," it said.

At 10.58 am, Cathay Pacific was down 0.58 hkd or 3.93 pct at 14.16, off a low of 13.88.
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Re: Cathay Pacific 293

Postby winston » Tue Sep 09, 2008 10:19 am

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RESEARCH ALERT - UBS upgrades Cathay to neutral from sell

HONG KONG, Sept 9 (Reuters) - UBS upgraded Cathay Pacific Airways <0293.HK> to neutral from sell due to lower jet fuel prices.

Singapore jet fuel prices have fallen 30 percent since their July peak, taking some pressure off airlines' margins in the short-term, UBS said in a report.

"We think Cathay is well positioned to take market share," UBS said. It raises the target price of Cathay Pacific to HK$15 from HK$14.25.

Shares of Cathay Pacific have fallen more than 28 percent so far in 2008 to end at HK$14.56 on Monday, compared with a more than 25 percent fall in the benchmark Hany Seng Index <.HSI>.
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Re: Cathay Pacific 293

Postby kennynah » Tue Sep 09, 2008 1:51 pm

my few times flying with CX... i dont get a welcoming feeling...in fact, the stewardesses were like many HK people...suffering from a very bad post colonial syndrome illness.....

nowadays, given a choice, i wont ever fly CX...nothing beats SQ
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Re: Cathay Pacific 293

Postby winston » Tue Sep 09, 2008 1:55 pm

kennynah wrote:my few times flying with CX... i dont get a welcoming feeling...in fact, the stewardesses were like many HK people...suffering from a very bad post colonial syndrome illness.....


I think that it is also no better with SQ especially when you are flying cattle class
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Re: Cathay Pacific 293

Postby kennynah » Tue Sep 09, 2008 2:00 pm

surprisingly, i dont get this feeling abt SQ...then again, could be that i am biased...
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Re: Cathay Pacific 293

Postby winston » Fri Sep 12, 2008 5:11 pm

Cathay Pacific (0293.HK: Quote, Profile, Research, Stock Buzz) and subsidiary Hong Kong Dragonair flew 2.13 million passengers in August, up 0.5 percent from the same period last year but far below a 13 percent growth over the first 7 months of the year.

Cathay blamed the Beijing Olympics and two tropical cyclones during the period for the drop in passenger traffic.
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Re: Cathay Pacific 293

Postby winston » Fri Oct 03, 2008 10:02 am

Not vested.

Deutsche Bank downgraded Cathay Pacific (0293.HK: Quote, Profile, Research, Stock Buzz) to sell on worries over slowing demand trends.

Cathay's traffic growth has slowed to 7 percent in August 2008 from 20 percent year-on-year in December 2007 .
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Re: Cathay Pacific 293

Postby helios » Tue Oct 14, 2008 6:35 pm

14-Oct - Hong Kong- Cathay Pacific Airways and Dragonair's total passenger business dropped by 0.7% in September, and has launched a "World Pass" fare promotion to boost sales.

Titus Diu, GM of cargo sales & marketing, said they were expecting a post-Olympics surge from Mainland China but there was no significant improvement before the Mid-Autumn Festival or National Day holidays.

"Currently, the only market showing consistent weakness is Northeast Asia, though the situation could change in the aftermath of the recent financial crisis."

The flight routes to North East Asia and Europe suffered most in September that the combined traffic of both Cathay Pacific and Dragonair posted a 7.1% and 6.8% decline, respectively, compared to the same month last year.

The flight routes in China also dropped 4.7%.

This week, Cathay Pacific's ad agency McCann Erickson rolled out a "World Pass" fare promotion in Hong Kong in an effort to provide good-value deals for customers in its home market.

Cathay Pacific said this promotion is just a tactical promotion to boost business in accordance to market demand. And "Getaway Surprise" is also another promotion that offers weekly specials on either Cathay Pacific or Dragonair.

The group said no event or campaign has been planned for Christmas and New Year holidays.

Source: Marketing-Interactive.com
[Finance disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought regarding investing of any stocks/ funds and/or whatsoever. The author has no vested interest in the mentioned stock at the time of writing.
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