Cathay Pacific reports $1.1bn loss for 2008

Hong Kong airline Cathay Pacific says it lost more than $1 billion (Dh4 billion) last year due to surging fuel prices and plunging demand amid the global economic crisis.

Asia’s third-largest carrier reported a loss for the 12 months ending December 31 of about HK$8.6 billion, or $1.1 billion.

That compares to a profit of HK$7 billion ($900 million) for 2007.

Revenues grew 15 per cent to about $87 billion last year.

Hong Kong’s flagship carrier has repeatedly warned its full-year results would disappoint, citing massive losses from bad bets on fuel contracts meant to hedge against last year’s rise in jet fuel prices.