cathay pacific shares plunge as it axes profit outlook
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Cathay Pacific shares plunge as it axes profit outlook

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleCathay Pacific shares plunge as it axes profit outlook

Cathay Pacific Boeing 747-400 jumbo jet, flying over the Kai Tak Airport control tower as it approaches Runway 13 on the last day of the 73-year-old airport.
Hong Kong - Arab Today

Shares in Hong Kong flag carrier Cathay Pacific plunged as much as five percent after it scrapped its profit outlook for the second half of the year, citing competition and overcapacity.
The Hong Kong-based firm said it no longer expected business to improve in the latter half of the year — a departure from its previous forecast. Net profit for the first six months of the year stood at HK$353 million ($45.5 million).
Shares in the company were trading as low as HK$10.16 ($1.31) per share, down 5.58 percent from Wednesday’s close. It closed with a smaller loss, ending at HK$10.26 or 4.65 percent down.
Air China, a shareholder of Cathay , also saw shares plunging 3.44 percent.
“Since the interim report was issued, the outlook for our airlines’ business has deteriorated,” company secretary David Fu said in statement issued late Wednesday to the Hong Kong Stock Exchange.
“It is no longer expected that the Cathay Pacific group’s results for the second half of 2016 will be better than those of the first half,” the statement said, adding the firm was engaged in a “critical review” of its operations against a “difficult revenue picture.”
Despite a rising appetite for air travel in the Asia-Pacific the Hong Kong airline is competing against firms that are aggressively expanding in the region as well as low-cost carriers, including fledgling Chinese rivals.
Hong Kong-based financial analyst Jackson Wong said aside from competition, other factors could take a toll on the firm in the coming months.
“For the second half of the year it’s going to be tough...the Chinese economy is a major factor...the oil prices which are going (back) up will also be one of the things they are facing,” said the associate director of Hong Kong-based Simsen Financial group.
He added the weak global economy affects the airline’s cargo business.
“iPhone 7 is still selling like a hot cake but it’s not growing as fast as before. It’s an indicator that electronics which used to be a profit source (for airlines) could be going flat,” he said.
The firm warned too that “overcapacity and strong competition is putting particular pressure on our passenger business.”
The company has also suffered huge hedging losses as the price of oil plunged from its peak, which should have provided a boost to Cathay’s bottom line.
Oil hedging is when an airline locks in prices of fuel — a huge chunk of most airlines’ outlay costs — at a pre-determined level for a certain amount of time.
In the first six months, Cathay recorded hedging losses at HK$4.49 billion.

Source: Arab News

themuslimchronicle
themuslimchronicle

GMT 10:47 2017 Friday ,29 December

European stocks flat in light holiday trading

GMT 16:28 2017 Tuesday ,19 December

Bahrain Bourse daily trading performance

GMT 11:51 2017 Tuesday ,19 December

Stock markets rally as US tax cuts move step closer

GMT 12:32 2017 Saturday ,16 December

Can Bitcoin Survive Central Banks' Scrutiny?

GMT 11:13 2017 Saturday ,16 December

Bitcoin hits new record high as warnings grow

GMT 06:20 2017 Saturday ,16 December

Strong Wall Street lifts European stock markets

GMT 05:28 2017 Friday ,15 December

European stocks and euro sag before rate calls

GMT 16:48 2017 Thursday ,14 December

Bahrain Bourse daily trading performance
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

cathay pacific shares plunge as it axes profit outlook cathay pacific shares plunge as it axes profit outlook

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 15:34 2012 Saturday ,18 February

Twike

GMT 07:28 2017 Monday ,25 December

N. Korea slams new UN sanctions as an 'act of war'

GMT 17:03 2017 Saturday ,24 June

Official praises Egypt’s governmental measures

GMT 17:18 2012 Saturday ,21 January

22 solar desalination plants completed in Abu Dhabi

GMT 22:33 2016 Wednesday ,10 February

Zimbabwe declares 'state of disaster'

GMT 13:50 2015 Wednesday ,26 August

2 US journalists killed during live broadcast

GMT 20:59 2016 Thursday ,10 November

5 things to know about Delhi's toxic smog

GMT 07:49 2017 Thursday ,06 April

US may widen ban of carry-on computers

GMT 15:13 2012 Monday ,26 March

Electric snail invented

GMT 13:52 2012 Tuesday ,20 March

Annual Arabic conference opens

GMT 01:56 2015 Wednesday ,08 April

Our forces defend religion, 2 Holy Mosques

GMT 04:43 2015 Tuesday ,31 March

Grand Museum to accomodate 150,000 antiquities
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle