Risk.net

Cathay Pacific rides out high fuel costs

The carrier has hedged 50% of its expected fuel needs for the rest of 2006, and so far is committed to hedging 25% for next year, said a company spokeswoman.

Fuel hedging gains increased to HK$720 million in the first half of 2006 from HK$513 million last year and included unrealised mark-to-market gains of HK$590 million (compared with HK$52 million in 2005), added Cathay.

This helped the airline to post a net profit of HK$8.68 billion, only 0.1% lower than that in the first half of 2005, although this came on the back of a 13.4% increase in turnover to $27.1 billion. “The biggest obstacle to a satisfactory profit was again the price of fuel,” said Cathay chairman Christopher Pratt at a post-results press conference on August 9. “For every HK$100 we earned, HK$38 went to the fuel suppliers. This is very frustrating.”

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: