Profits plunge at Cathay Pacific

<p>Cathay Pacific has reported an 83 per cent fall in profits.</p>

Annual profits at Cathay Pacific have dropped by 83 per cent, the company has revealed.

It was announced by the carrier that it made a net profit of 916 million Hong Kong dollars (£80 million) in 2012, down from HK$5.5 billion a year ago.

"Premium class yields were affected by travel restrictions imposed by corporations," Christopher Pratt, chairman of Cathay Pacific said in a statement.

An economic slowdown in key markets such as the US and Europe has been blamed for the impact on its business in the last 12 months.

Cathay Pacific also insisted that weak cargo demand and increased competition in the region also hurt its profitability during the last year.

Mr Pratt highlighted the fact that high fuel costs had hurt Cathay's business in the last 12 months too, especially on long-haul routes.

On the Hong Kong index, Cathay's share price held at around 14.20, with stocks dropping by about 0.4 per cent on the start of the day's trading.

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