Source: Reuters Author: Nerilyn Tenorio 08/05/2009
Subject Concerned: Airlines Aviation Fuel
On Aug. 5, Hong Kong's leading air carrier Cathay Pacific Airways posted a first-half net profit, turning around from last year's loss, on gains from fuel-hedging contracts.
The airline, Asia's No. 4 carrier since being overtaken by Japan's All Nippon Airways (ANA) in the No. 3 spot, reported a net profit of HK$812 million for January-June, compared with a loss of HK$760 million a year earlier. It booked fuel hedging gains of HK$2.1 billion.
The six-month result fall in the lower end of analyst forecasts, which stretched from a low of HK$400 million to a high of HK$3 billion because of widely varied estimates for fuel hedging gains.
Shares of Cathay, a unit of conglomerate Swire Pacific Ltd, were up 2.4 percent at HK$12.94 at the end of the morning session. The stock has risen by 48 percent this year, outperforming the broader market's 44 percent gain.