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Transportation

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.

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