Company Watch - Cathay Pacific Airways.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 14, 2006

Cathay Pacific Airways is about to celebrate 60 years and has come up with a special gift for employees. A 60th birthday is most auspicious in Chinese culture, and to mark this landmark year each of 15,000 eligible staff members worldwide will receive a sum of HK$3,388 ([pounds sterling]293). Called lai see - or "lucky money" it will be paid on September 1. OAG's Airline of the Year has invited the Hong Kong Philharmonic to deliver a special concert at the airline's headquarters, Cathay Pacific City. Chairman Christopher Pratt said: "I can think of no better way of celebrating our diamond anniversary with staff than by giving a traditional lai see that in itself represents a lucky number in Chinese culture. I would like to add how much the Board appreciates and supports the outstanding efforts of our staff, not only in our historic 60th year of operation as an airline, but over the years that went before." Other airlines take note. Out photo shows the original CPA DC3 "Betsy" now in the Hong Kong Science Museum. http://www.cathaypacific.com Aug 12, 2006

Cathay Pacific carried 8.1 million passengers during the six-month period, up 11.1%. Load factor increased 1 point to 79.1% but yield fell 3% to HKD45.8 cents. CX said that while demand from first and business class passengers remained strong, especially on long-haul routes, economy class yields declined as competition from LCCs in the region stiffened. Aug 10, 2006

Cathay Pacific endures flat first half. Cathay Pacific Group said "high fuel prices continued to undermine increased productivity and revenue" as it posted a half-year profit attributable to shareholders of HK$1.67 billion ($214.7 million), the same figure it reported in the first half of 2005.Turnover rose 13.4% to HKD27.09 billion but costs were up 14.8% to HK$D24.97 billion, dropping operating profit 0.8% to HK$2.12 billion. "This was a creditable performance given the high cost of fuel," Chairman Christopher Pratt said. "Nonetheless, expansion plans announced in the first half of our 60th anniversary year show the confidence we have in the airline's future and in the future of Hong Kong. Our full-year results, which should benefit from the acquisition of Dragonair, will continue to be heavily influenced by the price of fuel and related surcharges." Aug 10, 2006

Cathay Pacific's yields also "came under pressure" on flights to Europe. Fuel costs rose 30.4% to HKD8.68 billion. The company saved HKD720 million through hedging and said that cost per ATK remained static at HKD2.2. It dropped 1.3% excluding fuel. Aug 10, 2006

Unisys Corp. signed a three-year contract with Cathay Pacific Airways to host its core business applications. Unisys will move Cathay's reservations, departure control and cargo platforms to the Unisys data center in Rhodes. The multimillion-dollar deal includes a two-year option. Aug 8, 2006