Cathay losses set to narrow as airline plots recovery
CATHAY Pacific Airways flagged it will post a narrower first-half loss than the previous year on continued strong cargo demand and cost-cutting measures.
“Our consolidated losses in the first half of 2022, while substantial, are expected to be lower than the consolidated losses reported in the first half of 2021,” Ronald Lam, the airline’s chief customer and commercial officer, said in a statement Tuesday (Jun 14). Cathay reported a HK$7.6 billion (S$1.3 billion) deficit for the 6 months ended Jun 30, 2021.
The Hong Kong-based carrier also said it expects the number of destinations it operates to will double by the end of the year from 29 in January, as the Asian financial hub dials back some of the world’s most restrictive Covid-19 measures.
Cathay is also benefiting from significant pandemic easings around the world, like the removal of quarantine periods and testing, which are making travel easier for most passengers and flight crew.
Hong Kong is sticking to a 7-day quarantine, for now, limiting any upside for the carrier. Singapore Airlines, by contrast, aims to be operating at 67 per cent of its pre-Covid capacity by September.
Last month, Cathay said it expects cash burn to drop to less than HK$500 million a month for the next few months.
“We will be keeping a close eye on the opening up of travel activities in nearby countries, such as Japan and South Korea, and will look to operate flights to capture potential demand wherever possible,” Lam said Tuesday.
“We also expect transit traffic to improve and become more diversified, in particular between the UK, Australia and New Zealand, as well as North America and South-east Asia.” BLOOMBERG
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