HONG KONG: Hong Kong flag carrier Cathay Pacific said yesterday that first-half profit rose almost sixfold from a year earlier, helped by lower fuel prices, but shares fell to a nine-month low due to missed expectations.
Net profit in the six months through June rose to HK$1.97 billion (US$254 million) from HK$347 million in the same period of last year, helped by a slump in world oil prices that cut fuel costs by over a third.
The airline’s profit missed the HK$2.22 billion median estimate of six analysts polled by Bloomberg News.
Revenue for the period fell 0.9 percent to HK$50.39 billion while passenger yield, a key measure of profitability, also dropped.
“The group’s performance in the first six months of 2015 was considerably better than in the same period in 2014,” Cathay Pacific Chairman John Slosar said in a statement filed to the Hong Kong stock exchange.
“We expect our business to do well in the remainder of 2015.”
But Cathay warned it still faces “strong competition” from other rivals in the region.
Cathay’s shares fell 7.68 percent to HK$15.38 each, while the Hang Seng Index finished the day 1.31 percent lower.
