CATHAY PAC AIR(00293)2023-04-03 08:55Financial Performance - The group reported a revenue of HKD 51,036 million for 2022, an increase of 12.0% compared to HKD 45,587 million in 2021[4]. - Cathay Pacific's attributable loss to shareholders was HKD (6,548) million, representing an increase of 18.5% from HKD (5,527) million in the previous year[4]. - The group achieved a profit of HKD 2.26 billion in the second half of 2022, but incurred a loss of HKD 15.49 billion for the first half of the year[8]. - Cathay Pacific recorded a loss of HKD 6.54 billion for the year 2022, compared to a loss of HKD 5.52 billion in 2021[8]. - The company reported a significant increase in sales from North Asia, generating HKD 34,456 million in 2022, up from HKD 31,974 million in 2021, marking a growth of 7.8%[160]. - The company reported a net loss after tax of HKD 1.36 billion in 2022, compared to a loss of HKD 1.98 billion in 2021, reflecting a 31.3% improvement[37]. - The company reported a loss of HKD 6,548 million for the year, compared to a loss of HKD 5,527 million in 2021, representing a 18.5% increase in losses[156]. - The company incurred financial expenses of HKD 3,074 million, an increase from HKD 2,704 million in the previous year[152]. - The company reported a total comprehensive loss for the year amounted to HKD 8,365 million, compared to a total comprehensive loss of HKD 1,538 million in 2021[152]. Operational Statistics - The passenger load factor improved to 73.6%, up by 42.5 percentage points from 31.1% in 2021[5]. - Available seat kilometers increased by 51.6% to 20,056 million from 13,228 million in 2021[5]. - The average age of the fleet increased to 10.8 years from 10.5 years in 2021[5]. - The operating statistics showed a decrease in available ton kilometers by 11.0% to 10,100 million from 11,354 million in 2021[5]. - In 2022, Cathay Pacific carried 2.8 million passengers, with an average daily load of 7,682 passengers, representing a 291.1% increase compared to 2021[12]. - The overall cargo tonnage decreased by 13.4% to 1,154,000 tons, with a cargo load factor of 70.6% compared to 81.4% in 2021[12]. - The airline's available seat capacity is expected to reach approximately 70% of pre-pandemic levels by the end of 2023, with a goal to fully recover by the end of 2024[9]. - The company operated approximately 3,000 additional passenger flights in Q4 2022, with capacity reaching one-third of pre-pandemic levels[12]. Environmental Initiatives - The greenhouse gas emissions reduced by 12.5% to 4.9 million tons CO2 equivalent from 5.6 million tons in the previous year[5]. - Cathay Pacific aims to achieve a mid-term target of using sustainable aviation fuel for 10% of total fuel consumption by 2030[138]. - The company signed a purchase agreement with Aemetis to start procuring blended sustainable aviation fuel from 2025[138]. - Cathay Pacific's plastic recycling increased significantly by 1,147.2% to 21,016 kg in 2022, compared to 1,685 kg in 2021[136]. - The company reduced single-use plastic consumption by 56% as of 2022, surpassing its goal of halving usage by the end of 2022[140]. - Cathay Pacific offset 38,399 tons of CO2 in 2022 through its voluntary "Fly Greener" carbon offset program, with over 300,000 tons purchased since its launch in 2007[140]. Fleet and Capacity Expansion - The group plans to add 48 new aircraft to its fleet in the coming years[3]. - The company received five new aircraft in 2022 and expects to receive eleven more in 2023, enhancing fleet modernization and efficiency[32]. - As of December 31, 2022, Cathay Pacific operated a fleet of 181 aircraft, with a total of 222 aircraft across the group[31]. - The company plans to replace nine Airbus A300-600F freighters with nine second-hand Airbus A330F freighters by 2024[33]. Financial Management and Debt - The net debt to equity ratio improved to 0.92 from 0.98 in the previous year, a decrease of 0.06 times[4]. - As of December 31, 2022, the group had unrestricted cash reserves of HKD 27.2 billion[8]. - The company issued 1.676 billion A shares, raising RMB 15 billion, resulting in a dilution of its stake in Air China from 18.13% to 16.26%[41]. - The company recorded a significant loss of HKD 6.29 billion from associates, primarily due to delays in confirmations[8]. - The company has a total borrowing of HKD 100 billion, with a significant portion in fixed and floating interest arrangements[60]. Customer Engagement and Loyalty Programs - The new Marco Polo Club program was launched, merging with Asia Miles, resulting in over 13 million members[13]. - The company aims to enhance customer loyalty through data-driven insights into customer preferences for its services[13]. - Membership redemption for Cathay Pacific flights increased by 153% year-on-year, while non-flight rewards rose by 43%[27]. - The company launched the "Cathay Miles" program, offering over 70,000 seats for passengers to redeem for flights[24]. Corporate Governance and Compliance - The company has adopted a self-developed corporate governance code, which is available on its website[86]. - The board of directors is responsible for the strategic leadership and oversight of the group, aiming to maximize returns for shareholders while considering the interests of business partners and other stakeholders[87]. - The company has established a risk management and internal control system, which is regularly reviewed for effectiveness[113]. - The audit committee is responsible for recommending the appointment of external auditors to the board for shareholder approval[117]. Community Engagement and Social Responsibility - The company donated nearly 390,000 items to support vulnerable communities in Hong Kong during 2022, including over 110 tons of surplus food[142]. - Employees contributed approximately 1,720 hours of volunteer work during the pandemic, supporting various non-profit organizations[143]. - The "Spare Change Donation" program has raised over HKD 200 million for UNICEF since its inception in 1991, with approximately HKD 810,000 raised in the most recent audited year[143].