Dragged down by the sluggish cargo business and falling ticket prices, Cathay Pacific Airways plunged into the red in the first half, reporting a HK$935 million loss, compared with a HK$2.8 billion profit a year earlier.
It was the biggest first-half loss since January-June 2003, when it lost HK$1.2 billion amid the Sars crisis.
Sales rose 4.4 per cent year-on-year to HK$48.9 billion and losses per share were 23.8 HK cents. No dividend was declared.
Chairman Chris Pratt said passenger yield, which measures revenue per passenger per mile, was under pressure in all cabin classes.
Business travellers were reducing or deferring trips, while economy passengers were becoming more price-sensitive.
But Cathay continued to play down the looming impact of budget carriers on fares in the region.