Cathay Pacific shares hit by hedging loss - Asian share wrap
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