Cathay Pacific yesterday issued a profit warning to the Hong Kong Stock Exchange, advising that its financial results for 2008, including those for the first half, are expected to be disappointing.
The airline said its financial performance is being "materially and adversely affected" by the high price of jet fuel, with the average price paid by CX in the first half of 2008 60% above that paid in the first half of 2007.
"The most recent spot price for jet fuel is 93% higher than the average price paid by Cathay Pacific in 2007," the airline said. "In view of the volatility of the jet fuel price and the limited and uncertain extent to which this rapidly rising cost can be offset by fuel surcharges, it is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results."
Investors were advised to exercise caution in dealing in the airline's shares.
I Wonder what effect the 60 Mil Fine had on the bottom line!!!!
