Cathay Pacific's H1 Profit Drops 82 Pct

Cathay Pacific Airways' first half net profit dropped 82 percent to HKD$353 million as economic fragility and intense competition limited corporate travel.

The HKD$353 million (USD$45.5 million) H1 profit was down from HKD$1.97 billion in the same period last year.

Total revenue for the six months was HKD$45.68 billion, down from HKD$50.39 billion in 2015.

Lower fuel prices were partially offset by fuel hedging losses, with fuel costs down by HKD$3.36 billion from last year.

Cargo demand was generally weak with revenue of HKD$9.42 billion, a decrease of 17.2 percent compared to the same period in 2015.

"There was sustained pressure on revenues, reflecting suspension of fuel surcharges, weak currencies in some markets (and) weak premium class demand, particularly on long-haul routes," Cathay Pacific Group chairman John Slosar said in a statement.

The airline expects the operating environment in the second half to "continue to be impacted by the same adverse factors as in the first half. The overall business outlook therefore remains challenging", Slosar added.