Hong Kong's biggest airline Cathway Pacific has struggled in the last year due to rising fuel costs and the weak economies around the world. The airline only earned HK5.5 billion profits compared to HK14 billion the year before and projections for the current year are also very low. The airline explains part of the reason for this is the astronomic fuel prices at the moment and says that the amount for 40 percent of total costs. In addition to these high costs, the company also suffers from the tsunami that devastated Japan last year because of the low demand to travel to Japan after. Further, the flooding in Thailand and unrest in the middle east also hurt demand for travel.
http://www.washingtonpost.com/business/economy/hong-kong-airline-cathay-pacifics-2011-profit-dives-on-high-fuel-prices-weak-cargo-demand/2012/03/14/gIQAtTgxAS_story.html
Lauren Neeleman
its crazy what natural resources and disasters do to your company or economy! it is sad to see it go down just because of all of this.
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