Profits at Cathay Pacific have plunged 61% from a year earlier, as global economic uncertainty hit demand for passenger travel and cargo shipments.
The airline made $HK5.5 billion in 2011, compared with $HK14 billion in 2010 when it was one of the world's most profitable airlines.
Rising jet fuel prices also hurt the airline's performance, the BBC reports.
Cathay Pacific warned that the outlook for 2012 was even more challenging.
Chairman Christopher Pratt says that the airline is being hurt by instability and uncertainty in the world's major economies.
He says slowing demand for exports from China had hurt its cargo business, while its economy class services are also under pressure. Business class had performed better.