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Cathay Pacific expects big half-year loss of USD1.3 billion
Cathay Pacific has issued a profit warning, predicting a big first half loss for 2020.
It expects to post a net loss of nearly HK$10 billion (US$1.3 billion).
"The group will record a net loss of approximately HK$9.9 billion, which compares to a net profit to shareholders of HK$1.3 billion for the same period in 2019," the airline said in a statement.
The airline has taken a hammering for a full year now due not only to the Covid-19 pandemic but months of pro-democracy protests that rocked Hong Kong last year.
"The landscape of international aviation remains incredibly uncertain with border restrictions and quarantine measures still in place across the globe," said chief customer and commercial officer Ronald Lam.
Cathay posted a decline in June passenger numbers of 99.1% year on year.
There has been a slight rebound as Hong Kong Airport has now permitted international transit traffic once again, which makes up a significant proportion of revenues for Cathay.
Still, it is early days, Cathay says.
It is ‘yet to see any significant signs of immediate improvement.’
Hong Kong’s government agreed to fund the airline’s rescue with a HK$39-billion ($5 billion) recapitalisation plan which has just been approved by Cathay shareholders.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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