Hong Kong-based Cathay Pacific Airways announced on Wednesday that it recorded a net loss of HK$663 million from a net profit of HK$2.58 billion a year earlier, which is far worse than expectations.
The carrier, which owns regional carrier Dragonair and an 18.1% stake in mainland carrier Air China, attributed the loss to soaring fuel prices, which nearly doubled what it paid last year.
In the Jan.-Jun. period, Cathy Pacific's operating revenue hit HK$42.448 billion, up 22.6% year on year. The increase, however, failed to offset the surging fuel cost. Earnings per share turned to a loss of HK$0.618.
The Asia's third largest carrier had said its average jet kerosene price jumped 60% in the first half from the corresponding period last year, according to its profit warning released last month.
The results took into account a US$60 million fine for cargo price-fixing charges leveled by the US Department of Justice.
Cathay Pacific shares plunged 25% over the first six months of this year while the benchmark Hang Seng Index fell 20.5% during the period.
In the morning trading session of Aug. 7, shares of Cathy Pacific tumbled 4.2% to HK$14.12.
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