CATHAY PACIFIC FORECASTS GOOD 1987 PERFORMANCE
Cathay Pacific Airways Ltd <CAPH.HK>
forecast another good year in 1987 in view of good growth in
both passenger and cargo traffic volumes early this year over
the year-earlier period.
    The airline did not quantify its performance in early 1987
but said it would take delivery of one Boeing Co <BA.N> 747
freighter and one Boeing 747-300 passenger plane in September
and November respectively after it took a 747-300 last month.
    It earlier reported a 58.7 pct increase in 1986 net profit
to 1.23 billion H.K. Dlrs and announced a final dividend of 14
cents a share.
    But Cathay Pacific recorded sharp increases in net finance
charges to 124.9 mln dlrs from 44.4 mln a year.
    A spokesman for the firm linked the rise to two aircraft
deliveries in 1986.
    However, the company said in a statement good returns from
funds placed with investment managers had partly offset higher
interest costs resulting from additional lease financing and
other borrowing.
    It added that the airline last year also saw aviation fuel
prices fall to an average 4.59 dlrs a gallon from 6.76 dlrs in
1985.
    Passengers carried by Cathay Pacific totalled 4.2 mln last
year, up from 3.85 in 1985, with the passengers kilometre
travelled rising to 14.02 billion from 12.56 billion. But
passenger load factor was down to 69.1 pct from 71.0 pct.
    The airline's cargo operations recorded growth of 21 pct in
total tonnage over the previous year and a 35.9 pct rise in
revenue to 1.79 billion dlrs.
    Cathay Pacific floated its shares in April, 1986 and is now
50.23 pct owned by Swire Pacific Ltd <SWPC.HK>, 16.43 pct by
Hongkong and Shanghai Banking Corp <HKBH.HK> and 12.5 pct by
<China International Trust and Investment Corp>.
 REUTER
