The Cathay Pacific Group reported an 83.3 percent fall in its 2012 profit compared to 2011.

In 2012, Cathay Pacific had a profit of HK$916 million (USD$118 million) – but it was more than HK$5.5 billion (USD$709 million) in 2011. That’s six times the profit just a year before.

Cathay Pacific attributed its drop in profit to the high price of jet fuel, weak air cargo demand and pressure on passenger yields. Economic uncertainty, particularly in the Eurozone countries, and an increasingly competitive environment added to the difficulties, the company said.

Cathay Pacific’s share of profits from associated companies, including Air China, declined.

The company’s cargo revenue in 2012 decreased by 5.5 percent compared to 2011. Capacity was down by 3.1 percent, while the cargo load factor dropped by 3 points to 64.2 percent. The company’s cargo business was affected by weak demand in major markets, particularly from Asia to Europe.

Demand for shipments from the two key markets of Hong Kong and China was below expectations.

In 2012, Cathay Pacific began freighter services to Zhengzhou, China, Hyderabad, India and Colombo, Sri Lanka.

“The Cathay Pacific Group operates in a volatile and challenging industry, one that will always be highly susceptible to external factors that remain largely beyond our control,” Cathay Pacific chairman Christopher Pratt said. “The cost of fuel remains the biggest challenge, particularly for an airline such as ours where long-haul operations form a significant part of our total operations.”