Cathay warns investors that fuel will affects profits
Cathay Pacific has warned potential investors to expect disappointing results in 2008 due to escalating fuel costs, the Hong Kong-based airline said in a statement Wednesday.
“The financial results of Cathay Pacific Airways Ltd. for 2008, including those for the first half, are expected to be disappointing,” the airline said. “Cathay Pacific’s financial performance is being materially and adversely affected by the high price of jet fuel, with the average price paid by Cathay Pacific in the first half of 2008 60 percent above that paid in the first half of 2007. The most recent spot price for jet fuel is 93 percent higher than the average price paid by Cathay Pacific in 2007. In view of the volatility of the jet fuel price and the limited and uncertain extent to which this rapidly rising cost can be offset by fuel surcharges, it is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results. Investors are advised to exercise caution in dealing in shares of Cathay Pacific.”