many factors that are beyond the control of companies such as Cathay Pacific. For instance, according to International Air Transport Association (IATA), the average price of jet fuel in Asia and Oceania region stood at $116.7 per barrel in August 2014, and declined to $98.4 per barrel in February 2016. Furthermore, the political turmoil in the Middle East has impacted the oil prices.
Moreover, fuel is the biggest single cost for Cathay Pacific. As the jet fuel prices account for a major portion of the operational expenses, the company's margins will be affected. Hence, a drastic change in the prices of the fuel can have a serious impact on Cathay Pacific's expenses which may in turn impact its profitability and margins.