Cathay Pacific Airways expects a substantial increase in its profit for the first half of the year, with robust demand in both passenger and cargo sectors helping the company absorb the impact of oil price shocks stemming from the US-Iran conflict.
The airline announced on the Hong Kong Stock Exchange on Wednesday that it anticipates a profit in the range of approximately HK$6 billion to HK$6.5 billion for the first half, surpassing the roughly HK$3.7 billion reported in the same period last year.
Its performance was further bolstered by a gain of HK$1.4 billion resulting from the further dilution of its stake in Air China, where its shareholding decreased from 15.05% to 12.85%. Following disruptions to air travel in the Middle East due to the Iran conflict, which led travelers to seek alternative routes and carriers, Cathay Pacific emerged as one of the primary beneficiaries.
Similar to other airlines, Cathay Pacific is facing pressure from the sharp rise in jet fuel costs caused by the Iran conflict. The company has hedged 30% of its jet fuel requirements and has implemented fuel surcharges for both passenger and cargo customers, measures that have helped mitigate the impact of the oil price surge.
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