ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Record loss for Cathay Pacific exacerbated by fuel hedges

Shares rise 12% as forewarned investors take red ink in stride

Higher charges to carry freight offset some of Cathay Pacific Airways' vanished passenger revenue in the first half. (Photo by Konosuke Urata)

HONG KONG -- Cathay Pacific Airways has reported a record net loss of nearly $1.3 billion for the first half of the year under the impact of the coronavirus pandemic which has grounded all but a small fraction of the group's passenger flights.

The carrier's 9.87 billion Hong Kong dollar ($1.27 billion) loss was aggravated by hedging contracts for fuel set when no one could have imagined oil futures trading at prices below zero. A year earlier, the company generated a net profit of HK$1.35 billion.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more