Swire Pacific Ltd., the Hong Kong landlord, marine services provider and Coca-Cola bottler that controls the city's biggest airline, said first-half profit was little changed as aviation losses offset property gains.

Net income fell to HK$12.38 billion ($1.6 billion), or HK$8.17 a share, from HK$12.49 billion, or HK$8.18, a year earlier, the company said in a statement to Hong Kong's stock exchange. Sales rose to HK$11.8 billion from HK$10.34 billion.

Swire's 39.9 percent-owned Cathay Pacific Airways Ltd. yesterday posted its first loss in five years on higher fuel costs. That loss offset a 22 percent increase in Swire's property earnings, as the biggest commercial landlord in eastern Hong Kong Island benefited from surging office and retail rents.

"Swire's property rental income should continue to show strength,'' Eric Wong, a Hong Kong-based analyst at UBS AG, said before the earnings were released. The company's aviation unit is being hurt by "rampaging fuel costs,'' said Wong, who has a "buy'' rating on the stock.

Earnings were helped by an 11 percent increase to HK$8.09 billion in gains from property revaluation. Last year's first half earnings were boosted by a one-time gain of HK$1.08 billion from selling a stake in a container terminal in Shekou in China.

Earnings excluding gains from property revaluation dropped to HK$3.27 billion, or HK$2.15 a share, from HK$5.26 billion, or HK$3.44, a year earlier, Swire said in today's statement.

Cathay Pacific yesterday said it had a first-half loss of HK$663 million after fuel costs almost doubled and it set aside funds to cover a U.S. price-fixing fine.

Swire will pay an interim dividend of 90 Hong Kong cents per A share, unchanged from last year.

Swire's shares have declined 27 percent this year, compared with a 21 percent loss in the benchmark Hang Seng Index. The stock fell 1.1 percent to HK$78.15 at the trading break today, before earnings were announced.