Sunday, November 29, 2015

CATHAY PACIFIC TO PAY C$6MIL TO CANADA FOR CARGO PRICE FIXING


Cathay in C$6m settlement

Monday, November 30, 2015

Cathay Pacific Airways (0293) yesterday said it would pay C$6 million (HK$34.77 million) to settle an antitrust class-action case in Canada involving its cargo operations.
The settlement agreement is pending approval by the Canadian courts, the Hong Kong-based carrier said in a filing to the local exchange."Cathay Pacific does not admit any unlawful conduct, wrongdoing or liability in the settlement agreement," it said.The company added that it had made sufficient provisions in its accounts before 2015, therefore the settlement will not have any material effect on its future results.Apart from being subjected to antitrust charges in several countries in recent years, the carrier also suffered from a HK$3.74 billion loss from oil hedging in the first half, rising from a HK$1.02 billion loss for the same period last year.


Any drop in the oil price will trim the company's profits, as it does not plan to adjust the proportion of the fuel that it is hedging, said chief executive Ivan Chu in the half-year results press conference.Cathay Pacific saw net profit for the first half surge 468.3 percent to HK$1.97 billion from a year earlier, mainly due to improved contributions from its subsidiary and associated companies. Revenue dropped 0.9 percent to HK$50.39 billion.DAISY WU