Cathay Pacific warns profits to disappoint as jet fuel costs rise
Cathay Pacific Airways Ltd. warned Wednesday that its profits would be "disappointing" this year because of rapidly rising fuel costs.
By Agencies |
HONG KONG: Cathay Pacific Airways Ltd. warned Wednesday that its profits would be "disappointing" this year because of rapidly rising fuel costs.
The Hong Kong-based airline said it paid 60 per cent more for jet fuel in the first half compared to the same period in 2007. The most recent spot price for jet fuel was more than 90 per cent higher than the company's average price last year, it said.
Earnings during the first-half and full-year periods "are expected to be disappointing," the carrier said in a filing to the Hong Kong Stock Exchange. "It is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results."
The company's 2007 net profit surged 72 per cent on strong demand for first- and business-class travel despite the continued rise in fuel prices. Net profit for the 12 months that ended Dec. 31 rose to 7.02 billion Hong Kong dollars (US$900 million) from HK$4.09 billion in 2006.
The Hong Kong-based airline said it paid 60 per cent more for jet fuel in the first half compared to the same period in 2007. The most recent spot price for jet fuel was more than 90 per cent higher than the company's average price last year, it said.
Earnings during the first-half and full-year periods "are expected to be disappointing," the carrier said in a filing to the Hong Kong Stock Exchange. "It is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results."
The company's 2007 net profit surged 72 per cent on strong demand for first- and business-class travel despite the continued rise in fuel prices. Net profit for the 12 months that ended Dec. 31 rose to 7.02 billion Hong Kong dollars (US$900 million) from HK$4.09 billion in 2006.
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