Cathay Pacific reports HK$1.7bn operating loss

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Cathay Pacific appears to be in much worse shape than analyst expectations. Yesterday we quoted analysts in the South China Morning Post anticipating a HK$1.2bn first half loss for the Hong Kong-based carrier. In fact, the airline’s six-month results , released today, show a HK$1.7bn operating loss. In a statement, Cathay put the losses down to increased competition, higher fuel costs, the strength of the Hong Kong dollar, and the growing costs of aircraft maintenance. But it wasn’t all doom and gloom, with Cathay Pacific Cargo reporting an upturn in revenues of 11.7% year-on-year to HK$10.5bn, with volumes growing at the same rate to more than 966,000 tonnes.