Cathay Pacific Airways has announced that it expects to record a substantial loss for the first half of 2009. The airline attributes this anticipated loss to the ongoing global economic downturn, which has significantly impacted passenger and cargo demand.

In addition to reduced demand, volatile fuel prices have also contributed to the expected financial shortfall. The airline has been actively managing its fuel hedging program to mitigate the impact of price fluctuations, but these efforts have not been sufficient to offset the overall negative impact.

Cathay Pacific is implementing a range of cost-saving and revenue-enhancing measures to address the challenging operating environment. These initiatives include:

• Reducing capacity on certain routes
• Deferring non-essential capital expenditures
• Implementing a voluntary unpaid leave scheme for employees
• Aggressively managing operating costs

The airline remains committed to providing high-quality service to its customers and is confident that these measures will help it navigate the current economic challenges and emerge stronger in the long term. A full financial report for the first half of 2009 will be released in due course.