Photographer: Billy H.C. Kwok/Bloomberg

Cathay Profit Margin Strained as Fuel Hedging Losses Mount

  • Carrier may report net income fell 46% in first half of 2016
  • Airport levy threatens to depress fares already under pressure

Cathay Pacific Airways Ltd., the marquee Hong Kong airline, suffered millions of dollars in losses from fuel-hedges in the past two years. With the city’s government adding new fees on passengers to fund building a runway, the carrier faces more challenges to retain profit margins.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.