Cathay shares drop as profit slumps 82% on fuel hedge losses

© Khunaspix Dreamstime.

Cathay Pacific Airways, Asia’s biggest international airline, reported first-half profit that missed analyst estimates after posting losses from jet-fuel hedges and passenger yields declined amid competition with Chinese carriers. Shares fell the most in a year.

Net income in the six months through June fell 82% to HK$353 million (US$45.5 million), Cathay said in a statement yesterday. That fell short of the HK$1.07 billion median estimate in a Bloomberg News survey of four analysts. Sales declined 9.3% to HK$45.7 billion.

Cathay Chief ...