Cathay Pacific reports HK$663 million loss 1H 2008

[Mal]

Cathay Pacific - About Us : Press Room

Ouch. Looks like fuel costs are really biting hard - it's a -125.7% change on last year's 1st Half result.

Cathay Pacific Airways today announced a loss of HK$663 million in its 2008 Interim Results. This compares to a profit of HK$2,581 million in the first half of 2007. The big change in the company’s financial performance was entirely due to the relentless rise in the cost of jet fuel in recent months.

[JohnK]

You can sympathise with Cathay Pacific as they have do it harder than most airlines with the government setting the maximum fuel surcharge per sector on flights from Hong Kong.

[Dave Noble]

Originally Posted by JohnK

You can sympathise with Cathay Pacific as they have do it harder than most airlines with the government setting the maximum fuel surcharge per sector on flights from Hong Kong.

Why? There is nothing to stop them setting fares to a higher price if needed. They are just restricted in how much they can have pretend fares with fuel fines

dave

[pauly7]

Originally Posted by Mal

Cathay Pacific - About Us : Press Room

Ouch. Looks like fuel costs are really biting hard - it's a -125.7% change on last year's 1st Half result.

Wow thats huge. Does Cathay have any cosy government deal to prop them up?? (Like Singapore)

[FPred]

Originally Posted by pauly7

Wow thats huge. Does Cathay have any cosy government deal to prop them up?? (Like Singapore)

I didn't know singapore airlines does. since when?

[NM]

Originally Posted by FPred

I didn't know singapore airlines does. since when?

Since Singapore Airlines has been owned by Temasek Holdings. Temasek is owned by the Singapore Government. So I guess it has been since about 1974.

Note that Temasek also owns SingTel, which now owns Optus and 49% of Virgin Atlantic.