HONG KONG

Hong Kong carrier Cathay Pacific issued a profit warning on Wednesday, blaming its financial woes on the soaring cost of jet fuel.

'Cathay Pacific's financial performance is being materially and adversely affected by the high price of jet fuel,' the company said in a statement to the Hong Kong stock exchange.

The statement said the most recent spot price for jet fuel had risen 93 percent compared to the average price paid by Cathay in 2007.

The company said that because of the volatility in the price of fuel, it was not possible to accurately predict the effect on its 2008 financial results.

Shares in Cathay fell 7.1 per cent in afternoon trade following the announcement.