Cathay Pacific has posted an 83% plunge in profits, blaming higher fuel costs and a drop in demand for corporate travel.
The carrier made a net profit of US$118m in 2012.
“Premium class yields were affected by travel restrictions imposed by corporations,” chairman Christopher Pratt said in a statement.
“Economic uncertainty, particularly in the eurozone countries, and an increasingly competitive environment added to the difficulties."
Pratt added that high fuel costs had hurt Cathay’s profitability, especially on long-haul routes, which it said were dominated by “older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft”.
In recent months, Cathay has offered unpaid leave to its cabin crew, reduced capacity on long-haul flights and retired less fuel-efficient aircraft.
