Shares in Cathay Pacific look close to appearing at a decade-low today after the Chinese government told the airline to ban staff who had taken part in Hong Kong protests.
Hong Kong-based Cathay Pacific reported a profit of €153 million (£141 million) for the six months to June after a loss of €30 million in the same period last year.
Update: Flights departing Hong Kong airport cancelled amid protest
But Cathay chairman John Slosar said global trade tensions and protests in Hong Kong were having “direct and indirect effects on demand”.
China’s aviation authority has ordered the airline to remove crew from flights into China if they had taken part in protests against the Hong Kong government’s extradition bill.
Members of Cathay Pacific cabin crew were involved in a recent protest at the airport and the Hong Kong pilots’ union is supporting a Cathay Pacific pilot who is among protestors charged with rioting.
It is the first time direct action the Chinese authorities have taken against a company in the region.
Cathay Pacific said it would comply with the order.
The airline’s shares were down 4.4% today, while cathay’s holding company Swire Pacific, fell 5.3%.
Cathay Pacific flights passing through Chinese airspace must submit a list of crew for approval with the Civil Aviation Administration of China.
Update: Flights departing Hong Kong airport cancelled amid protest