Cathay Stock Drops After Posting First Loss Since 2008
- Loss in 2016 at $74 million; second interim dividend scrapped
- Carrier predicts challenging operating environment in 2017
CAPA Analyst Sees Cathay Pacific Management Changes
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Cathay Pacific Airways Ltd. reported its first loss in eight years and scrapped plans for a second-half dividend after competition from Chinese airlines and losses from fuel hedging dented earnings. Shares declined.
The net loss totaled HK$575 million ($74 million) in 2016, while sales dropped 9.4 percent to HK$92.8 billion, Hong Kong-based Cathay, Asia’s largest international airline, said in a statement Wednesday. Jefferies Group LLC said the losses could continue in the current year as well.