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Financial Performance - The group's revenue for 2020 was HKD 46,934 million, a decrease of 56.1% compared to HKD 106,973 million in 2019[7]. - Cathay Pacific reported a loss attributable to shareholders of HKD 21,648 million in 2020, compared to a profit of HKD 1,691 million in 2019, representing a decline of HKD 23,339 million[7]. - The company reported a net loss of HKD 21,648 million for the year 2020, compared to a profit of HKD 1,691 million in 2019, marking a substantial year-over-year decline[147]. - The total comprehensive income for the year was significantly affected by the pandemic, leading to substantial losses across various segments[155]. - The company reported a total comprehensive loss of HKD 20,654 million for the year[142]. - The operating loss for the year was HKD 58,639 million, compared to an operating profit of HKD 3,441 million in 2019[142]. - The company incurred impairment and related expenses of HKD 28,815 million primarily related to 34 aircraft expected to be retired or returned to lessors[57]. - The company reported a significant impairment and related expenses of HKD (4,056) million, reflecting the challenging market conditions faced during the year[148]. Passenger and Cargo Operations - The passenger load factor decreased to 58.0% in 2020 from 82.3% in 2019, a drop of 24.3 percentage points[8]. - Passenger revenue for 2020 decreased by 84.3% to HKD 11.313 billion, with passenger numbers dropping by 86.9% compared to 2019[11]. - Cargo revenue ton kilometers decreased by 26.5% to 8,309 million in 2020 from 11,311 million in 2019[8]. - Cathay Pacific's cargo revenue for 2020 was HKD 24.57 billion, an increase of 16.2% compared to 2019, reflecting an imbalance between available cargo capacity and demand[12]. - The cargo load factor increased by 8.9 percentage points, with cargo yield rising by 58.3% to HKD 2.96[48]. - The company carried 460,000 passengers in 2020, a decrease of 86.9% compared to 2019, with revenue dropping 84.3% to HKD 11.31 billion[22]. Restructuring and Cost Management - The company implemented a corporate restructuring plan, resulting in a cost of approximately HKD 2.4 billion, saving around HKD 0.5 billion monthly[11]. - The restructuring plan involves a reduction of 8,500 positions, approximately 24% of the workforce, to improve operational efficiency[21]. - The company plans to maintain cash preservation measures, with senior management salary reductions continuing throughout 2021[13]. - The company announced a capital restructuring plan of HKD 39 billion in June 2020, supported by the Hong Kong SAR government and shareholders[10]. Government Support - The company received government support of HKD 2.689 billion related to the COVID-19 pandemic[10]. - The group received government support of HKD 16.89 billion related to the COVID-19 pandemic[44]. - The company received approximately HKD 26.89 billion in government support related to the COVID-19 pandemic[16]. Fleet and Operations - The average age of the fleet was 10.1 years in 2020, slightly down from 10.3 years in 2019[8]. - The group plans to delay the delivery of 60 new aircraft due to the pandemic[5]. - The company has reached an agreement with Airbus to delay the delivery of A350-900 and A350-1000 aircraft to 2023, and A321neo deliveries to 2025[12]. - The company ceased operations of Cathay Dragon by the end of 2020, affecting approximately 8,500 jobs[10]. Environmental and Social Responsibility - Cathay Pacific aims to achieve net zero carbon emissions by 2050 and is collaborating with governments and the UN to meet this goal[73]. - The company has set a target to halve its single-use plastic footprint by the end of 2022, based on 2018 levels, having already removed over 46 million single-use plastic items[73]. - The "ChangeMakers" program continued in 2020, focusing on environmental protection, youth development, and cultural integration[74]. - The company collected and donated over 648 tons of surplus food in 2020[74]. Corporate Governance - The company adheres to high standards of corporate governance, reflecting a commitment to integrity, transparency, and responsible conduct[103]. - The board of directors is responsible for the strategic leadership and oversight of the group, ensuring maximum returns for shareholders while considering the interests of stakeholders[103]. - The company has established various committees, including audit, remuneration, and risk management, to assist in fulfilling its responsibilities[104]. Financial Position and Liabilities - The total assets of the group as of December 31, 2020, amounted to HKD 204.57 billion, with an increase in property, plant, and equipment by HKD 8.72 billion during the year[62]. - The group’s total liabilities increased significantly, with borrowings and lease repayments totaling HKD (30,134) million in 2020, up from HKD (18,785) million in 2019[146]. - The adjusted net debt ratio, excluding lease liabilities, improved to 0.75 in 2020 from 0.99 in 2019[179]. Future Outlook - The company anticipates that passenger capacity in the first half of 2021 will be less than 25% of pre-pandemic levels, with overall capacity expected to be down by over 50% for the year[13]. - The management's basic scenario assumes passenger traffic will start to recover in the second half of 2021 but will not return to pre-crisis levels until 2024[170]. - The company plans to focus on market expansion and new product development in the upcoming year[142].

Cathay Pacific Airways Ltd (OTCPK:CPCAY) Q4 2020 Earnings Conference Call March 9, 2021 1:30 AM ET Company Participants Rebecca Sharpe - CFO & Executive Director Ronald Lam - Chief Customer & Commercial Officer Andy Wong - General Manager, Corporate Affairs Conference Call Participants Operator Good afternoon. Welcome to the Cathay Pacific 2020 Annual Results Analyst Webcast. Thank you for joining us. Before we begin, please allow us to go with the rundown for the webcast and house rules. Kindly note that t ...

Financial Performance - Cathay Pacific reported a revenue of HKD 27,669 million for the six months ended June 30, 2020, a decrease of 48.3% compared to HKD 53,547 million in 2019[10]. - The company recorded a loss attributable to shareholders of HKD (9,865) million, compared to a profit of HKD 1,347 million in the same period last year, marking a decline of HKD 11,212 million[10]. - Total revenue for the group fell by 48.3% to HKD 27.67 billion, while Cathay Pacific and Dragonair's total revenue dropped by 51.2% to HKD 25.33 billion[42]. - The group reported a loss of HKD 9,865 million for the period, compared to a profit of HKD 1,347 million in the same period last year[60]. - The operating loss for the period was HKD 8,735 million, compared to an operating profit of HKD 2,474 million in the same period last year[52]. - The company reported a significant decrease in operational expenses, totaling HKD 33,939 million, down 33.5% from HKD 51,073 million in the previous year[52]. - The group recognized impairment and related charges of HKD 2.465 billion (pre-tax), including a reduction in asset value of HKD 1.21 billion for 16 aircraft expected not to return to service[94]. Passenger and Cargo Operations - The passenger load factor decreased to 67.3%, down 16.9 percentage points from 84.2% in 2019[11]. - Passenger revenue decreased by 72.2% to HKD 10.39 billion, with passenger numbers dropping by 76% to 440,000[13]. - Cargo revenue increased by 8.8% to HKD 11.17 billion, reflecting a significant imbalance in supply and demand in the cargo market[13]. - Overall cargo volume decreased by 31.9% to 667,000 tons, reflecting a significant reduction in passenger flights[24]. - The cargo load factor increased by 5.9 percentage points to 69.3%[24]. - The company operated 2,228 cargo-only flights during the March to June period to increase cargo capacity[24]. Cost Management and Financial Restructuring - The company announced a capital restructuring plan amounting to HKD 39 billion, which included issuing HKD 19.5 billion in preferred shares and a rights issue raising HKD 11.7 billion[12]. - The total fuel cost decreased by HKD 9.069 billion (62.8%) due to a 22.4% drop in average fuel prices and a 51.8% reduction in fuel consumption[14]. - Non-fuel costs per available tonne-kilometer increased by 34.1% to HKD 2.99, indicating the impact of reduced capacity on fixed or semi-variable costs[14]. - Monthly cash burn was estimated at HKD 2.5 billion to HKD 3 billion due to significant customer refunds[16]. - The company implemented various cost-saving measures, including voluntary special leave plans with participation rates of 80% and 90% among staff[14]. Employee and Operational Changes - The company employed over 33,000 staff globally, with approximately 27,600 based in Hong Kong as of June 30, 2020[8]. - The company experienced a 32.9% decrease in onboard service and passenger expenses, reflecting reduced flight operations[47]. - The company has recruited over 260 employees in the first half of 2020, including 90 pilots[40]. - The airline's management anticipates a slow recovery in passenger business for an extended period[16]. Government Support and Financial Aid - The group received government support of HKD 1.06 billion related to the COVID-19 pandemic, with HKD 640 million recognized as revenue and HKD 420 million as cost reductions[41]. - The group received rental concessions totaling HKD 123 million due to COVID-19, which were accounted for as negative variable lease payments[94]. Environmental and Social Responsibility - Cathay Pacific has removed over 32 million single-use plastic items annually since announcing its single-use plastic strategy in 2018, aiming to halve its single-use plastic footprint by the end of 2022[37]. - The company donated approximately 170 tons of surplus food to local charities in the first half of 2020[37]. - Cathay Pacific's "Change for Good" program has raised HKD 193 million for UNICEF since its inception in 1991[39]. Future Outlook and Strategic Plans - The company aims to continue investing in Hong Kong to develop it as a major international aviation hub[7]. - The airline's management plans to optimize capacity in response to the changed market outlook and cost structure[16]. - The company is in discussions with Airbus and Boeing to delay the delivery of new aircraft, extending timelines to 2023 and beyond[14].

Financial Performance - Cathay Pacific's revenue for 2019 was HKD 106,973 million, a decrease of 3.7% compared to HKD 111,060 million in 2018[8]. - The net profit attributable to shareholders of Cathay Pacific was HKD 1,691 million, down 27.9% from HKD 2,345 million in the previous year[8]. - Earnings per share decreased to HKD 0.43, a decline of 27.9% from HKD 0.60 in 2018[8]. - The overall performance in 2019 was significantly impacted by geopolitical issues and trade disputes, leading to a severe decline in passenger and cargo volumes[18]. - The company anticipates significant losses in the first half of 2020 due to the impact of social unrest and the COVID-19 pandemic[17]. - The company reported a significant increase in employee expenses, totaling HKD 20,125 million, slightly down from HKD 20,211 million in 2018[150]. - The group reported a net cash increase of HKD 1,269 million for the year, compared to HKD 771 million in 2018, indicating a rise of 64.5%[154]. - The total comprehensive income for the year was HKD 2,678 million, compared to HKD 3,226 million in 2018[150]. - The company declared an interim dividend of HKD 708 million for 2019, following a dividend of HKD 787 million in 2018[156]. Operational Metrics - The total available seat kilometers (ASK) increased by 5.1% to 163,244 million in 2019 from 155,362 million in 2018[9]. - The passenger load factor decreased by 1.8 percentage points to 82.3% in 2019, compared to 84.1% in 2018[9]. - The group experienced a severe drop in passenger traffic and cargo business in the second half of 2019 due to social events in Hong Kong, with a decrease in passenger numbers by 0.7% compared to 2018[15]. - The overall passenger load factor dropped by 1.8 percentage points to 82.3%, while the yield fell by 3.9% to HKD 0.536[16]. - The average passenger load factor for 2019 was significantly lower than in 2018, with a notable decline in short-haul and mainland China routes[15]. - The company streamlined operations to enhance productivity and service quality[47]. Fleet and Expansion - The group has ordered 70 new aircraft to be delivered by the end of 2024, indicating ongoing investment in fleet expansion[7]. - The fleet expansion plan includes the addition of 3 Airbus A350-1000, 4 Airbus A350-900, and 6 Airbus A321-200neo aircraft in 2020[10]. - As of December 31, 2019, Cathay Pacific operated 150 aircraft, with a total of 236 aircraft across the group, including 70 new aircraft on order to be received gradually until 2024[37]. - The airline received two Airbus A350-900 aircraft and four Airbus A350-1000 aircraft in 2019, bringing the total A350 fleet to 24 aircraft[37]. - The company plans to receive five additional Airbus A320-200neo aircraft in early 2021[40]. Cargo Operations - The group reported a 14.3% decline in cargo revenue per available ton kilometer, dropping to HKD 1.20 from HKD 1.40 in 2018[9]. - The cargo revenue for 2019 was HKD 21.15 billion, down 14.2% year-on-year, with cargo capacity decreasing by 6.7%[16]. - The cargo demand was significantly impacted by US-China trade tensions, leading to a decline in performance, although there was a recovery in late 2019 during the peak season[15]. - The cargo volume handled by Cathay Pacific Services decreased, with a total of 1.9 million tons processed, of which 53% were transshipment goods[45]. - The yield per cargo ton kilometer fell by 7.9% to HKD 1.87, reflecting weakened cargo demand due to a strong US dollar and intensified US-China trade tensions[33]. Employee and Workforce - The group employed over 34,200 staff globally, with approximately 28,200 based in Hong Kong as of December 31, 2019[7]. - The company has graduated over 100 trainees from its pilot training program in 2019[80]. - In 2019, Cathay Pacific and Cathay Dragon recruited over 3,000 staff, including 1,500 cabin crew and 350 pilots[80]. - Female employees represented 61.1% of the workforce, up from 59.7%[78]. Sustainability and Corporate Responsibility - Cathay Pacific has offset 32,321 tons of CO2 in 2019 as part of its "Fly Greener" carbon offset program, which has cumulatively offset over 197,000 tons since its inception in 2007[79]. - The company aims to halve its single-use plastic footprint by the end of 2022, having removed over 32 million single-use plastic items annually since 2018[79]. - The airline's "Spare Change" fundraising program has raised nearly HKD 190 million since its establishment in 1991, with HKD 9.5 million donated in 2018 alone to support vulnerable children[80]. - The company is committed to sustainability, targeting a 50% reduction in carbon emissions by 2030[81]. Governance and Risk Management - The board of directors is responsible for the strategic leadership and oversight of the group, aiming to maximize shareholder returns while considering the interests of business partners and other stakeholders[107]. - The company has established a risk management framework based on the "three lines of defense" principle, with the board being fully responsible for risk management systems and procedures[126]. - The audit committee held three meetings during 2019, with the CEO, CFO, and external auditors regularly attending[132]. - The company has implemented a fuel hedging policy to manage fuel price volatility[132]. - The board has established various committees, including the audit committee and risk management committee, to assist in fulfilling its duties[110]. Financial Position and Liabilities - The total asset value as of December 31, 2019, was HKD 214.516 billion, with right-of-use assets amounting to HKD 17.35 billion recognized due to the adoption of HKFRS 16[69]. - The group’s total liabilities increased to HKD 94,878 million in 2019 from HKD 78,010 million in 2018, reflecting a growth of 21.6%[152]. - The company’s net debt was HKD 100 billion, with a significant portion in Hong Kong dollars[73]. - The group recognized a total of HKD 4,412 million in deferred liabilities in 2019, compared to HKD 3,335 million in 2018[197]. - The group’s total long-term liabilities, including borrowings and lease liabilities, reached HKD 97,260 million as of December 31, 2019, compared to HKD 73,877 million in 2018[196].

Financial Performance - Cathay Pacific reported a profit attributable to shareholders of HKD 53,547 million for the six months ended June 30, 2019, representing a 0.9% increase from HKD 53,078 million in 2018[7]. - Earnings per share increased significantly to HKD 1,347 from a loss of HKD 263 in the previous year, marking a 1,610% improvement[7]. - The group recorded a profit attributable to shareholders of HKD 1.347 billion in the first half of 2019, compared to a loss of HKD 263 million in the same period of 2018, reflecting a significant turnaround[9]. - Passenger revenue increased by 5.6% to HKD 37.49 billion, with passenger numbers rising by 4.4% to 18.3 million, despite a decline in overall yield[10]. - Cargo revenue decreased to HKD 11.49 billion, down from the previous year, attributed to weak demand and the impact of US-China trade tensions[10]. - The total revenue for the group reached HKD 53.547 billion, a 0.9% increase from HKD 53.078 billion in the previous year[37]. - Operating expenses decreased by 2.5% to HKD 51.073 billion, down from HKD 52.381 billion in the previous year[38]. - The airline business segment generated revenue of HKD 52,984 million, while the non-airline business segment contributed HKD 2,316 million for the six months ended June 30, 2019[67]. - The net profit for the six months ended June 30, 2019, was HKD 1,347 million, compared to a loss of HKD 263 million for the same period in 2018[52]. Operational Metrics - The group’s revenue passenger kilometers (RPK) increased by 6.7% to 68,078 million for the six months ended June 30, 2019, compared to 63,810 million in 2018[8]. - The passenger load factor remained stable at 84.2%, unchanged from the previous year[8]. - Available seat kilometers (ASK) increased by 6.7% to 80,814 million in 2019, while the overall load factor remained stable at 84.2%[16]. - The cargo revenue ton kilometers decreased by 6.1% to 5,477 million compared to 5,831 million in the previous year[8]. - The average yield per available ton kilometer for cargo dropped by 9.8% to HKD 1.19 from HKD 1.32[8]. - The on-time performance of flights in the first half of 2019 was 89%, with a cargo capacity decrease of 7.5% to 344 million available ton-kilometers[31]. Fleet and Aircraft Management - The group has ordered 67 new aircraft, which are expected to be delivered by the end of 2024[6]. - The fleet consisted of 158 aircraft for Cathay Pacific and 48 for Cathay Dragon as of June 30, 2019, with a total of 216 aircraft in operation[28]. - The company received four Airbus A350-1000 aircraft in the first half of 2019, with a total of 20 expected to be in service by the end of 2021[29]. - The company received its first second-hand Boeing 777-300 in July 2019, with another expected in the second half of 2019[30]. - The total number of aircraft scheduled for retirement includes 6 in 2022 and 9 in 2023, indicating future fleet optimization[30]. Financial Position and Debt - The net debt increased by 33.5% to HKD 78,213 million from HKD 58,581 million at the end of 2018[7]. - The total equity attributable to shareholders decreased to HKD 62,566 million as of June 30, 2019, from HKD 63,936 million as of December 31, 2018, a decrease of 2.1%[50]. - The debt-to-equity ratio increased from 0.92 to 0.94 after excluding the impact of HKFRS 16[43]. - The group’s net financial expenses increased by 40.6% to HKD 1.420 billion[38]. - The company’s long-term liabilities increased to HKD 71,952 million as of June 30, 2019, from HKD 60,183 million as of December 31, 2018, reflecting a rise of 19.5%[50]. Strategic Initiatives and Developments - The group plans to continue its three-year corporate transformation plan, which is in its final year, aiming for a more streamlined and competitive business[13]. - The group has completed the acquisition of Hong Kong Express, aiming to expand its low-cost airline operations and enhance its network[11]. - The company launched a new dining experience in long-haul business class, offering more meal options[17]. - Seasonal flights to Niigata will be launched in Q4 2019, with two weekly flights scheduled from October to March 2020[21]. - The company has improved procedures for rebooking due to flight disruptions and enhanced mobile services for online changes[17]. Challenges and Market Conditions - The group anticipates that the operating environment will remain challenging due to geopolitical tensions and trade disputes affecting demand for air passenger and cargo services[11]. - The company will cease operations on the Cairns route starting October 2019 due to competitive pressures on yield[22]. - Demand for travel to South Asia, the Middle East, and Africa remains strong, reflecting robust booking conditions from Hong Kong and Japan[22]. Environmental and Social Responsibility - Cathay Pacific's sustainable development report for 2018 was published in July 2019, highlighting the company's commitment to environmental responsibility[35]. - The company faced antitrust litigation in multiple jurisdictions, including Germany, the Netherlands, Norway, and South Korea, related to its cargo business[91]. - The company has made provisions for tax disputes with tax authorities in various jurisdictions, although the final outcomes remain uncertain[90].

Financial Performance - Cathay Pacific's revenue for 2018 was HKD 111,060 million, representing a 14.2% increase from HKD 97,284 million in 2017[7]. - The net profit attributable to shareholders was HKD 2,345 million, a significant turnaround from a loss of HKD 1,259 million in the previous year[7]. - Earnings per share rose to HKD 59.6, compared to a loss of HKD 32.0 in 2017, marking a 91.6% increase[7]. - Cathay Pacific recorded a profit attributable to shareholders of HKD 23.45 billion in 2018, compared to a loss of HKD 12.59 billion in 2017[14]. - The earnings per share for 2018 was HKD 0.596, while in 2017, it recorded a loss per share of HKD 0.32[14]. - In the second half of 2018, Cathay Pacific achieved a profit of HKD 26.08 billion, while the first half of 2018 and the second half of 2017 recorded losses of HKD 2.63 billion and profits of HKD 7.92 billion, respectively[14]. - Passenger revenue for 2018 was HKD 73.19 billion, an increase of 10.1% compared to 2017[14]. - The group's revenue increased by 18.5% to HKD 28.316 billion in 2018, driven by strong demand in the cargo business[15]. - Total revenue for the group increased by 14.2% to HKD 111.060 billion in 2018, compared to HKD 97.284 billion in 2017[48]. - The group achieved a profit of HKD 2.608 billion in the second half of 2018, contrasting with a loss of HKD 263 million in the first half of the same year[47]. Operational Metrics - The group operated a total of 212 aircraft by the end of 2018, with plans to receive 71 new aircraft by the end of 2024[4]. - The passenger load factor for 2018 was 84.1%, slightly down from 84.4% in 2017[8]. - Available seat capacity increased by 3.5%, reflecting the launch of new routes and increased frequencies on existing routes[14]. - The yield improved by 6.7% to HKD 0.558, driven by demand for first and business class, fuel surcharges, and revenue management measures[14]. - The average age of the fleet increased to 9.9 years from 9.3 years in 2017, reflecting ongoing fleet management strategies[8]. - The company employed over 32,400 staff globally, with approximately 26,200 based in Hong Kong[6]. - Cathay Pacific and Cathay Dragon carried a total of 35.5 million passengers in 2018, an increase of 1.9% compared to 2017[23]. - The passenger load factor decreased by 0.3 percentage points to 84.1%[14]. - Available seat kilometers (ASK) increased by 3.5% to 155.362 million in 2018, with a load factor of 84.1%[25]. Cargo Operations - Cargo revenue ton kilometers increased by 4.2% to 12,122 million in 2018, compared to 11,633 million in 2017[8]. - The cargo business showed strong performance with increases in cargo volume, yield, and load factor[14]. - Cargo capacity increased by 2.6%, with a load factor rising by 1 percentage point to 68.8%, and cargo tonnage increased by 4.7%[15]. - Cathay Pacific and Cathay Dragon's cargo revenue increased by 20% to HKD 24.66 billion, with cargo volume up by 2.6% and load factor rising by 1 percentage point to 68.8%[34]. - The cargo yield rose by 14.7% to HKD 2.03 per ton, reflecting an increase in high-value special cargo and rising fuel surcharges[34]. Fleet Management - The group received its first eight Airbus A350-1000 aircraft in 2018, with plans to increase the fleet to 20 by the end of 2021[15]. - The company plans to receive 2 Airbus A350-900 and 4 Airbus A350-1000 aircraft in 2019[39]. - The total number of aircraft operated by Cathay Pacific and its subsidiaries is 212, with 109 owned and 43 leased[40]. - The fleet includes 84 owned and 43 leased aircraft, with 60 in operation as of the end of 2018[40]. - The company aims to streamline its fleet to enhance operational efficiency and reduce costs[39]. Financial Stability - Cathay Pacific's debt-to-equity ratio improved to 0.92 from 0.97 in the previous year, indicating a reduction in leverage[7]. - The net finance costs increased by 20.0% to HKD 2,114 million from HKD 1,761 million[58]. - The group’s total liabilities decreased to HKD 45,471 million as of January 1, 2018, from HKD 44,115 million at the end of 2017, indicating improved financial stability[150]. - The group’s net borrowings decreased by 1.2% to HKD 58,581 million, with 52.1% of borrowings being fixed-rate[70]. - The group’s total long-term liabilities, including financing lease obligations, stood at HKD 73,877 million as of December 31, 2018, compared to HKD 78,394 million in 2017[181]. Sustainability and Corporate Responsibility - The company stopped using single-use plastic straws and stirrers in 2018, with a commitment to sustainability[77]. - The company achieved a B rating in the Carbon Disclosure Project's climate change survey in 2018[77]. - The "Spare Change Donation" program raised HKD 11.7 million in 2017, contributing to nearly HKD 190 million since its inception in 1991[78]. - The company has made charitable donations totaling HKD 8 million in direct contributions and HKD 7 million in discounted airline tickets during the year[89]. - The company is committed to complying with all applicable provisions of the Environmental, Social, and Governance (ESG) reporting guidelines[89]. Governance and Compliance - The company has adopted a self-developed corporate governance code, which is available on its website[105]. - The board of directors is responsible for approving the annual budget and forecasts, reviewing business operations and financial performance[106]. - The company has established a general mandate to repurchase shares and issue new shares not exceeding 20% of the total issued shares as of the date of the resolution[135]. - The company adheres to strict guidelines for handling and disclosing inside information as per the Securities and Futures Ordinance and Listing Rules[132]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2018, in accordance with Hong Kong Financial Reporting Standards[136]. Employee and Community Engagement - The total number of employees rose to 26,623, representing a 2.3% increase from 26,029 in 2017[76]. - In 2018, Cathay Pacific and Cathay Dragon recruited over 2,600 employees, including 1,245 cabin crew and 226 pilots[80]. - The pilot training program graduated 74 trainees in 2018[80]. - The company regularly reviews its human resources and compensation policies based on legislation, industry practices, market conditions, and employee performance[80]. - The company streamlined work processes to enhance decision-making flexibility and focus on customer service[81].