Hong Kong - Hong Kong's flagship airline Cathay Pacific Wednesday issued a profit warning to investors, saying its 2008 results would be "disappointing" because of rising fuel prices. 

The airline, which made a net profit of 909 million US dollars in 2007, said in a statement it was paying on average 60 per cent more for fuel in 2008 than it did in the first half of 2007 and the situation was worsening. 

"The most recent spot price for jet fuel is 93 per cent higher than the average price paid by Cathay Pacific in 2007," the statement said. "Investors are advised to exercise caution in dealing with shares of Cathay Pacific. 

"In view of the volatility of the jet fuel price and the limited and uncertain extent to which this rapidly rising cost can be offset by fuel surcharges, it is not possible to estimate accurately the effect of high jet fuel prices on the 2008 financial results." 

Cathay Pacific, which with its subsidiary Dragonair carried 23.5 million passengers in 2007, reported a 72 per cent year-on-year profits rise for 2007. 

However, when the results were announced in March, the airline forecast conditions would be harder in 2008 because of the rise in fuel prices and the slowdown in the global economy. (dpa)