Cathay Pacific hit by hedging loss

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Cathay Pacific hit by hedging loss

Postby Greg on Wed Nov 05, 2008 5:15 pm

Cathay Pacific on Wednesday issued its second profit warning of the year because of a sudden fall in fuel prices which could have a surprisingly negative impact on its earnings because of hedges it made earlier as a protection against surging oil prices.

The carrier did not give a specific earnings forecast, but said that its 2008 results would be ”disappointing”.

The airline also said that demand had fallen across the board, including cargo freight. From its base in Hong Kong, Asia’s leading financial centre, Cathay observed that: “Corporate travel volumes in all classes are of concern as corporate clients begin to impose stricter travel policies on their employees.”

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Re: Cathay Pacific hit by hedging loss

Postby captmidnight on Wed Nov 05, 2008 9:54 pm

I know DFW didn't have much of a chance, but this means HKG-DFW-HKG has become more out of reach. Much bigger concern though, will CX's cargo ops at DFW be affected by this downturn? Or even cancelled?
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Re: Cathay Pacific hit by hedging loss

Postby Greg on Thu Nov 06, 2008 5:05 pm

No, Cathay is still going one daily, every night.

I have heard from various cargo types that cargo frequencies are being reduced, and are actually now going out with more than they are arriving with! That is quite a turnaround!
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