Cathay’s profits fall 61%

Cathay Pacific Airways has announced a 61% fall in profits last year due to persistently high fuel prices and weakness in the world’s major economies. The airline posted a profit of 5.5 billion Hong Kong dollars ($709 million) for 2011, down from 2010’s record HK$14 billion. The 2010 profit which was boosted by some one-time gains. Earnings per share fell to HK$1.40 from HK$3.57. Fuel costs rose by HK$12.5 billion, or 44%, in 2011 from the year before, which the airline managed to offset some of that with a HK$1.8 billion profit from fuel hedging contracts, which cover about 20%