Cathay Pacific posts 1H net loss of HK$935 mn

Cathay Pacific Airways posted a first-half net loss of HK$935 million ($121 million) on Wednesday, citing higher fuel prices, strong competition and economic instability in Europe. The loss for the six months ended June 30 compared with a first-half net profit of HK$2.81 billion a year earlier, representing a 133 percent reversal for the blue-chip Asian airline. Revenue rose 4.4 percent to HK$48.86 billion. Company chairman Christopher Pratt said the carrier's business had been "significantly affected by the persistently high price of jet fuel, passenger yields coming under pressure and weak air cargo demand". "These factors are common to the aviation industry as a whole. Airlines around the world are being adversely affected by the current business environment," he said in a statement. "Our profits from associated companies, including Air China, also showed a marked decline." He said a recent reduction in the fuel price could "provide welcome relief". "We will continue to take whatever measures are necessary to protect the business, managing short-term difficulties while remaining committed to our long-term strategy," he said. "Our financial position remains strong and we are in a good position to deal with our current challenges."