Hong Kong’s Cathay Pacific Airways has issued a profit warning, cautioning investors that its financial results are likely to be “disappointing” this year due to increased fuel costs.
The Oneworld alliance carrier says in a Hong Kong stock exchange statement: “The financial results of Cathay Pacific Airways for 2008, including those for the first half, are expected to be disappointing. Cathay Pacific’s financial performance is being materially and adversely affected by the high price of jet fuel, with the average price paid by Cathay Pacific in the first half of 2008 60% above that paid in the first half of 2007.”
It says the current spot price for jet fuel is 93% higher than the average price it paid in 2007, adding: “In view of the volatility of the jet fuel price and the limited and uncertain extent to which this rapidly rising cost can be offset by fuel surcharges, it is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results.”
The airline reported a record-high net profit of HK$7.02 billion ($899 million) for 2007.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news