Cathay Projects Loss Of Up To HK$6bn For 2021

Cathay Pacific Group said on Monday that it expects to report a loss of HK$5.6-6.1 billion for 2021.

Hong Kong’s flag carrier said in a statement that the figure is based on a preliminary review of the unaudited consolidated management accounts of the group for the year ended December 31, 2021.

Cathay Pacific said that while the loss was substantial, it "compares favourably" to the HK$21.6 billion loss reported for 2020.

The airline operator said the improvement was driven primarily by strong cargo demand, adding that it carried approximately 1.3 million tonnes of cargo in 2021, the same amount recorded for 2020.

Cathay Pacific's chief executive officer Augustus Tang said passenger numbers were "subdued" due to strict quarantine requirements and travel restrictions with more than 710,000 passengers flying last year, compared to 4.6 million in 2020, and 35.2 million in 2019.

Tang said tighter quarantine restrictions for aircrew introduced in December will significantly impact cargo and passenger flight capacity for the coming year, estimating that this is likely to result in an operating cash burn of HK$1-1.5 billion per month starting from February.

Cathay said it is still finalising its annual results, which will be published in full in March.