, Hong Kong
629 views

Cathay Pacific hit by massive $6.45b fuel hedging loss in 2017

The airline deep dives into the red after posting its fourth straight year of deficits.

Bloomberg reports that Cathay Pacific is struggling to take off as it reports its fourth consecutive year of deficits amidst massive fuel-hedging loses worth $6.45b in 2017 with analysts expecting a turnaround by 2019.

Even though the airline has reduced the proportion of fuel it hedges, the effects still weigh on the company’s financials as the futures contracts were locked in years ago. 

To add to the airline’s headaches, Cathay has been largely unsuccessful in reducing the hefty compensation packages of its pilots – which include housing allowances – and accounts for the company’s second largest cost component after fuel. 

Here’s more from Bloomberg:

Photo from Cathay Pacific 


 

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!