Cathay Pacific flags HK$7b loss in FY2022
CATHAY Pacific Airways on Friday (Jan 20) forecast a loss between HK$6.4 billion (S$1.1 billion) and HK$7 billion for its 2022 financial year, but highlighted an upbeat outlook after Hong Kong and mainland China lifted their quarantine rules.
Analysts had expected a loss of HK$4.17 billion for the 12 months ended Dec 31, financial data firm Refinitiv said. The airline reported a loss of HK$5.53 billion for its previous financial year.
In November, the carrier predicted a “substantial” annual loss, although it expected improvements in its second-half results.
The dull forecast echoed those from other airlines as well.
Air China reported disappointing metrics during the month of December, as many Chinese airlines struggled with capacity constraints.
However, Cathay chief executive Ronald Lam said on Friday that in the second half of 2022, there was a trend of continuous improvement in the operations and financial performances of the airline and its subsidiaries. This followed the easing of pandemic-related travel restrictions.
He added that demand for short-haul travel to leisure destinations shot up recently, with the company anticipating continued strength in demand in January and the Chinese New Year period.
While the passenger market improved as passenger and crew quarantine rules were eased, the air-cargo market was weaker in the fourth quarter of 2022, compared with a year earlier.
Cathay said that its capacity decreased by 67.8 per cent last month, when compared with its December 2019 levels. It aimed to operate at 70 per cent of its pre-pandemic passenger capacity by the end of 2023.
SEE ALSO
The airline said in October it planned to hire 4,000 staff over the next 18 to 24 months to rebuild staffing levels, which were cut during the pandemic. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
