Hong Kong flag carrier Cathay Pacific on Wednesday booked the first back-to-back annual loss in its seven-decade history but said it was in the black for the second half and was upbeat about the next year. The firm’s report was its worst since 2008 during the
Hong Kong flag carrier Cathay Pacific on Wednesday booked the first back-to-back annual loss in its seven-decade history but said it was in the black for the second half and was upbeat about the next year.
The firm’s report was its worst since 2008 during the global financial crisis, as lower-cost Chinese airlines ate into market share while it took a major hit from fuel costs.
“Increased fuel costs are increasing operating costs and adversely affecting results,” chairman John Slosar said in a statement.
However, while it posted a net loss of HK$1.26 billion ($161 million), that was much better than the HK$2.26 billion forecast in a survey by Bloomberg News.
The news was greeted by a surge more than three percent surge in the firm’s share price in afternoon Hong Kong trade, although the gains were later pared.
Cathay suffered a HK$2.05 billion in the first six months of the year but that was narrowed by a healthy second-half, when it shifted into the black.
The second-half results were boosted by improved premium class demand and a strong cargo business, with Slosar saying an better global economic outlook also helped.
Fuel hedging costs fell to HK$6.
