Cathay warns of "disappointing" results
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Cathay Pacific Airways has warned that its full-year financial results for 2008 will be “disappointing”, following losses on fuel hedging contracts, Bloomberg has reported. Unrealised losses on fuel hedging contracts were estimated to be HK$2.8 billion (US$361 million) at the end of October. Compounded by the pressures of softening demand, Cathay is reported to be pessimistic about its annual performance.
“Revenue has started to weaken materially,” Cathay Pacific said in the statement. “This reflects in particular a significant strengthening of the US dollar and reduced first and business class travel and cargo volumes in the current adverse financial and economic circumstances.”
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