How successful is Cathay Pacific Airline

Authors Avatar

Jaron Leung        Business and Economics Studies Coursework        Mr. Robert


Cathay Pacific Airways is an international airline registered and based in Hong Kong, offering scheduled cargo and passenger service to over 90 destinations around the world. Cathay Pacific had a fleet of 94 aircrafts providing the services.

In this project, I am going to look at how successful Cathay Pacific Airways is in a few different ways. My primary research will base on some questionnaire and interview by staff and customers. My secondary research will be looking at the 2005 interim report of the firm.


First measure of success we are going to examine is profit. Firstly, we are going to look at the overall picture of profit. What the firm is actually making?

The bottom line: Net Profit.

The total cost increased as the total revenue had increased. The net profit had a little bit of decrease, but it is still quite stable.

Net profit margin is a way of displaying net profit in relation to sales. It is net profit expressed as a percentage of Sales.

The net profit margin had decrease over the two years.

Net profit is a useful of comparing performance over time and comparing performance with companies in the same industry, but perhaps of a different size.

We can use capital employed as a method of measuring business success on its own. It is an indicator of size.

Join now!

Return on Capital Employed is the amount of net profit divided by the asset employed in the business. (ROCE)

The ROCE had a very small decrease over the two years.

Market Capitalisation

Tracking the share price over time is a good indicator of success. Market capitalisation is the amount of money needed to buy every share at the current market price. Market capitalisation can be used to show which company is the biggest in terms of market value.

Sales, Turnover or total Revenue can be perhaps considered a measure of the size of firms. It could ...

This is a preview of the whole essay