Cathay Shares Drop as Profit Slumps 82% on Fuel Hedge Losses
- Cathay’s yields under pressure as Chinese carriers expand
- Airline didn’t benefit fully from global drop in oil prices
Cathay Pacific 1H Profit Slumps 82%
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Cathay Pacific Airways Ltd. reported first-half profit that missed analysts’ estimates as losses from jet-fuel hedges mounted and competition with Chinese carriers cut passenger yields. The shares dropped the most in a year.
Net income in the six months through June fell 82 percent to HK$353 million ($45.5 million), Asia’s biggest international airline said Wednesday. That fell short of the HK$1.07 billion median estimate in a Bloomberg News survey of four analysts. Sales declined 9.3 percent to HK$45.7 billion.