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Cathay Pacific reports $1.1 billion loss for 2008

Cathay Pacific reports $1.1 billion loss for 2008

Cathay Pacific Airways Ltd. racked up its first yearly loss in 10 years Wednesday as bad bets on jet fuel costs and plummeting demand due to the economic crisis took a toll on Asia's third-largest carrier.
Hong Kong's flagship airline reported a loss for the 12 months ended Dec. 31 of about $8.6 billion Hong Kong dollars ($1.1 billion), the company said in a statement to the stock exchange.
The loss, just slightly better than many analyst expectations, compared to a profit of HK$7 billion ($900 million) for 2007 and was the airline's first annual red ink since the height of the Asian financial crisis in 1998.
For all of 2008, revenue grew by about 15 percent to more than HK$87 billion, the company said
Cathay has repeatedly warned its full-year results would disappoint.
As with a number of airlines around the world, Cathay suffered massive losses from bad bets on contracts meant to hedge against a rise in jet fuel prices during the first half of 2008. Paper losses on hedge contracts running from 2009-2011 have surged to HK$7.6 billion, the company said.
Further battering profits was a fall in travel in the second half as the global economy slowed, the company said.
Cathay shares traded 2.1 percent higher at HK$7.15 in Hong Kong trade Wednesday.


Updated : 2021-06-21 02:41 GMT+08:00