Cathay Reports HK$9.9bn Loss In First Six Months

Hong Kong flag carrier Cathay Pacific on Friday reported a net loss of HK$9.9 billion in the first half this year, as the airline continued to reel under the impact of the Covid-19 pandemic which has virtually choked off global travel sector.

The parent company of Cathay Pacific and Cathay Dragon said it carried just 27,106 passengers in June – a decrease of over 99 percent when compared to last year.

Cargo business also suffered in that month, with the two airlines seeing a drop of 43 percent.

The company indicated a bleak outlook ahead, saying the airlines will operate only about 10 percent of normal flight schedule in August.

The statement said it saw a gradual pickup in connecting passenger demand as a ban on transit traffic via the Hong Kong International Airport was partially eased.

But it said many of its aircraft, which are now parked at the airport, are unlikely to re-enter meaningful service before summer next year.

The government last month announced a multi-billion dollar plan to help the cash-strapped airline. Under the HK$40 billion restructuring plan, the government is to lend HK$7.8 billion to the company and buy special shares worth HK$19.5 billion.

Cathay chairman Patrick Healy said the airline will submit a restructuring plan by end of this year, and refused to rule out job cuts during the revamp.