Hong Kong carrier Cathay Pacific has reported a net profit of HK$6bn ($773m), a 90 per cent increase from the HK$3.1bn ($399m) it posted in 2014.
In a statement released on Wednesday (March 9), the airline said a combination of strong demand and lower fuel prices offset its fuel-hedging losses to help record its highest net profit since 2010.
Despite the profit surge, Cathay Pacific’s passenger revenues fell 3.5 per cent to HK$7.3bn ($940m) which the carrier attributed to strong competition, a reduction in fuel surcharges and “unfavourable” foreign currency movements.
Cathay Pacific chairman John Slosar said despite being in a better operating environment, the airline will continue to face “significant challenges” in 2016.
However, Slosar described the airline's financial position as strong and said it will continue to invest in aircraft, products and its network.