Cathay Shares Resume Slide as Flight Cancellations Compound Woes

(Bloomberg) -- Shares of Cathay Pacific Airways Ltd., which tumbled to a 10-year low on Monday, extended their slide after the carrier canceled hundreds of flights in the wake of the abrupt closure of Hong Kong’s airport.

The stock fell as much as 5.4% and was down 4.2% at HK$9.39 at 10:29 a.m. in Hong Kong, headed for its lowest close since April 2009. The airline’s parent, Swire Pacific Ltd., also dropped.

The flight cancellations compounded the headwinds facing the company, which has emerged as the most visible corporate target for China amid the protests that have been gripping the former British colony for more than two months. Bocom International Holdings Co. cut its investment rating on the stock, citing near-term uncertainties.

China hit out at the airline last week after its employees joined anti-Beijing protests in Hong Kong. Some state-run Chinese companies have also told employees to stop flying Cathay flights, according to people familiar with the matter.

--With assistance from Matt Turner.

To contact the reporter on this story: Young-Sam Cho in Hong Kong at ycho2@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen

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