Cathay Pacific profit dives 82% in 1st half

HONG KONG • Shares in Hong Kong flag carrier Cathay Pacific plunged yesterday after the company reported that its first-half profit dropped 82 per cent from a year earlier due to a slowdown in China and intense competition from other airlines.

The company also warned it faced a "difficult environment" in the coming months as weaker demand and huge fuel hedging losses have hit its bottom line.

Net profit for the first six months of the year plummeted to HK$353 million (S$61 million), Cathay said in a statement issued to the Hong Kong Stock Exchange, causing stocks to tumble 7.3 per cent to HK$11.92 at the closing yesterday.

The company's statement added that a slowdown in the Chinese economy had led to restrictions on corporate travel.

BLOOMBERG

Barnes & Noble fires chief exec

NEW YORK • Barnes & Noble ousted chief executive officer Ron Boire after less than a year on the job, saying he wasn't the right person to revamp a bookstore chain struggling to compete with Amazon.com.

Management duties will be handed over to 75-year-old founder Leonard Riggio and other executives while Barnes & Noble searches for a new chief executive officer (CEO).

As part of the shake-up, Mr Riggio will postpone his retirement as executive chairman, the New York- based company said on Tuesday.

The departure brings fresh upheaval to a chain reeling from the rise of e-books and online rivals.

Mr Boire, a former Sears Canada executive who became CEO in September last year, had sought to revive growth by increasing the shelf space allotted to non-book merchandise like toys and games.

BLOOMBERG