Cathay Pacific slumps to a surprise loss as crude oil hobbles recovery

BEIJING: Cathay Pacific Airways Ltd. slumped to a surprise loss on surging fuel expenses and past hedging contracts gone awry, challenging Chief Executive Officer Rupert Hogg’s efforts to turn around the carrier that faces increasing competition from mainland Chinese airlines.

The premium carrier reported a net loss of HK$263 million ($34 million) for the six months through June, according to a statement on Wednesday. That compares with a loss of HK$2.05 billion a year earlier and the median estimate for a profit of HK$140 million in a Bloomberg News survey of five analysts.