My Account Menu

CAPA Login


Register to trial CAPA Membership!

Cathay Pacific shares hit by hedging loss - Asian share wrap

9-Jan-2009
Cathay Pacific CEO, Tony Tyler
Cathay Pacific CEO, Tony Tyler
  • Cathay Pacific shares fall sharply on massive paper hedging losses, weak revenue environment.

Cathay Pacific's shares slumped 7.6% on 08-Jan-08, as investors reacted to news the airline's unrealised fuel hedging losses for 2008 had reached close to USD1 billion. Cathay CEO, Tony Tyler, stated the airline may alter its fuel-hedging policies.

Possibly of more concern for investors is the airline's guidance that first quarter bookings are "markedly down" from last year, including big falls in premium bookings. Mr Tyler stated, "the biggest challenge in 2009 is to generate as much as revenue we can in the weak passenger and freight markets".

Shares in cross-equity partner, Air China, also suffered, falling 7.8%. In Nov-08, Air China, reported potential hedging losses of USD454 million. There were few risers in bearish Asian equity markets yesterday, with only Asiana (+1.7%) and Shanghai Airlines (+3.3%) advancing.

Asia Pacific selected airlines daily share price movements (% change): 08-Jan-08


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.