Cathay Pacific posts H1 profit as lower fuel prices offset cargo fall

Lower fuel prices helped Cathay Pacific notch a profit for H1 this year, but the airline reported the US-China trade war had knocked its cargo business and that protests in the city had affected inbound travel in July. The airline recorded a HK$1.35bn ($172.2m) profit in the six months to June, up from a loss of HK$263m a year earlier. The results for H1 come after the company returned to profit in 2018 following two consecutive years of losses. Revenue nudged up 0.9% to HK$53.5b. Cargo revenue fell during the period, dropping 11.4%, compared to a year earlier to HK$11.5b, which chairman John Slosar said was “due in part to US-China trade tensions”. Cathay said it expected to achieve better results in H2, in line with the normal annual pattern for the airline, despite the headwinds. “Geopolitical and trade tensions are expected to continue to affect the global economy and, in turn, demand for air travel and air freight,” Slosar cautioned. Protests over the past two months in Hong Kong sparked by a controversial government extradition bill had reduced inbound traffic in July and hit bookings, the statement said. The airline was forced to cancel flights on Monday amid a general strike in Hong Kong as anti-government demonstrators organised to highlight the breadth of discontent among the city’s workers. Its shares closed 4.2% lower on Monday at a 9-month low in response to the disruption. Passenger yield per kilometre, a key metric for the industry, slipped 0.9%. Fuel costs were down 7.7% compared to a year earlier after accounting for fuel hedging.<br/>