Cathay Pacific 2015 Net Profit Jumps 90 Percent

Cathay Pacific Airways reported a more than 90 percent lift in net profit for 2015, as low crude oil prices and a higher contribution from its affiliate Air China boosted income.

Cathay said annual net profit was HKD$6 billion (USD$772.57 million).

In its earnings statement, Cathay said contributions from its partners had improved, without giving details. The drop in oil prices also helped reduce fuel costs by 37.8 percent from a year ago, it added.

Air China, of which Cathay owns about a third, said in January it expects its annual net profit to rise by up to 80 percent as demand for air travel from China rises.

"The operating environment was better in 2015 than in 2014, but we faced some significant challenges which we expect to continue in 2016," said Chairman John Slosar.

The airline said cargo revenue fell 9 percent to HKD$23 billion, and forecast demand to remain low in 2016 due to industry overcapacity.