Cathay Pacific Airways said its annual profit tumbled by over 80% because of high jet fuel prices, global economic uncertainty and weak demand for air cargo.
Revenues for the year edged up 1%.
Hong Kong's biggest airline today blamed stubbornly high fuel prices for weighing down the results.
Jet fuel is Cathay's biggest cost, accounting for 41% of its total expense bill.
The airline said average fuel prices rose 1.7% and the "sustained" high price throughout most of 2012 "had a major impact on operating costs."
Cathay said it was a "challenging year" for the aviation industry in general.
"Economic uncertainty, particularly in the euro zone countries, and an increasingly competitive environment added to the difficulties," the airline said.
Profit from more lucrative business and first class tickets fell as companies cut back on travel while weak demand from major export markets, especially Europe, hurt the carrier's air cargo business.
Cathay said is 2012 profit fell 83% to $916m Hong Kong dollars ($118m) from HK$5.5 billion in 2011. This marked the company's weakest full-year performance since 2008, when it lost HK$7.9 billion amid the global financial crisis.
Cathay also owns regional Hong Kong-based carrier Dragonair.
