Cathay Pacific profit dives on higher fuel prices

HONG KONG (AP) — Cathay Pacific Airways says annual profit tumbled by more than 80 percent last year because of high jet fuel prices, global economic uncertainty and weak demand for air cargo.

Hong Kong's biggest airline reported a profit on Wednesday of 916 million Hong Kong dollars ($118 million), or 23.3 HK cents (3 cents) a share for 2012.

That's down 83 percent from HK$5.5 billion or HK1.40 a share in 2011. Revenue edged up 1 percent to HK$99.4 billion.

The airline blamed stubbornly high fuel prices for weighing down the results. Jet fuel is Cathay's biggest cost, accounting for 41 percent of its total expense bill, and the airline said high prices "had a major impact on operating costs."

Cathay also owns regional Hong Kong-based carrier Dragonair.