Page last updated at 09:48 GMT, Wednesday, 2 July 2008 10:48 UK

Fuel costs to hit Cathay profits

Cathay tail fins
Cathay is not alone in having to deal with the impact of surging fuel prices

Hong Kong-based airline Cathay Pacific has said its 2008 profits will be "disappointing" following a substantial rise in the cost of jet fuel.

The airline said a 60% rise in the average price of fuel had "adversely affected" its financial performance.

The volatility of the fuel price meant it could not estimate the effect on its profits this year, the firm said.

Higher costs have forced airlines around the world to cut jobs and reduce their schedules.

Cathay Pacific advised its investors to "exercise caution" in dealing with its shares.

Its shares closed 5.9% lower at 13.98 Hong Kong dollars. In October last year they were HK$23.


SEE ALSO
BA ups fuel fees in premium seats
23 Jun 08 |  Business
United Airlines sheds 950 pilots
24 Jun 08 |  Business
Silverjet sacks entire workforce
13 Jun 08 |  Business
Cathay Pacific profits jump 72%
05 Mar 08 |  Business
United Airlines cuts 100 planes
04 Jun 08 |  Business
Airlines cut costs as fuel rises
13 Jun 08 |  Business

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