Cathay Pacific sees passenger capacity at 25% of pre-Covid levels by year-end

CATHAY Pacific Airways expects its passenger capacity to approach up to 25 per cent of pre-pandemic levels by year-end and is now targeting a positive cash flow position, it said on Friday (Jul 15).

The airline, Hong Kong's flag carrier, had operated at 11 per cent of pre-pandemic passenger capacity last month as some of the strictest Covid-19 regulations in the world outside mainland China slammed travel to the financial hub.

While the city suspended a rule that banned flights for bringing in passengers infected with Covid-19 earlier in July, all arrivals into Hong Kong are still mandated to do 1 week of hotel quarantine and comply with frequent testing orders.

Cathay also said it expects cargo capacity to near 65 per cent of pre-pandemic levels by end of 2022, compared with about 56 per cent in June.

"We expect that the anticipated capacity increases will continue to have a positive impact on our monthly operating cash burn," the airline said in a statement.

In May, Cathay had said it expects cash burn to be under HK$500 million (S$89 million) a month for the next few months.

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Rival Singapore Airlines said earlier this month it expects passenger capacity to reach about 81 per cent of pre-pandemic levels by December. REUTERS