Cathay Pacific Airways Ltd., Asia's third-largest carrier, said Wednesday it swung to a loss in the first half of the year as soaring jet fuel costs and a hefty US fine offset growth in passenger and cargo traffic. During the six months ended June 30, losses amounted to HK$663 million (US$85 million) compared to a profit of HK$2.58 billion (US$330 million) in the same period a year ago, the airline said. Sales climbed 23 percent to HK$42 billion (US$5.4 billion). It was Cathay's first half-year loss since 2003, when fears over severe acute respiratory syndrome, or SARS, devastated the region's tourism industry. The company still booked a profit for that full fiscal year, however. The subpar results, well below many forecasts, come as airlines the world over struggle to cope with record fuel costs. Carriers such as Qantas Airways and Virgin Blue Holdings have scaled back capacity in recent months. Cathay, which warned recently that financial results would be “disappointing” because of mounting fuel costs, said Wednesday the company's average “into-plane” fuel price surged 60 percent to US$132 per barrel. As a result, its fuel bill skyrocketed 83 percent to HK$19.31 billion (US$2.5 billion) during the period. In total, fuel costs accounted for about 45 percent of operating costs, up from nearly 34 percent.
