Cathay Pacific profits jump 72%

Cathay Pacific warned that 2008 would be a tougher year

Cathay Pacific Airways has reported a 72% rise in profits for 2007, but says conditions will be harder in 2008.

Cathay reported a net profit of $901.9m (£454m) for 2007, higher than expected and helped by the weak dollar and sales at Air China, in which it owns 18%.

Including its Dragonair subsidiary, Cathay Pacific carried 23.35m passengers last year, a rise of 28.5%.

But the company said 2008 would be more difficult, because of high fuel prices and a slowdown in the global economy.

"Any substantial slowdown in world economic activity would pose risks to anticipated passenger and cargo volumes and revenue," chairman Christopher Pratt said.

Dragonair, which focuses on mainland China, was taken over by Cathay in September 2006. Last year was its first contribution to annual profits.