Cathay Reports HK$7.56bn Loss In First Half Of 2021

Cathay Pacific on Wednesday said it suffered a HK$7.56 billion loss in the first half of 2021, blaming the emergence of new Covid-19 variants which led to the tightening of travel restrictions and quarantine requirements in both Hong Kong and its key markets.

However, the losses were 23 percent less than that of the same period last year, thanks to stronger cargo demand and cost-cutting measures.

The struggling carrier is not offering an interim dividend.

Cathay said revenues from cargo were HK$11.1 billion, compared with HK$745 million from passengers.

It only carried about 157,000 people in the first six months, which was 96.4 percent down from the same period in 2020.

"Covid-19 continued to pose significant challenges for the Cathay Group in the first half of 2021 and this continues to be the toughest period in our history," said Cathay's chairman Patrick Healy.

He warned that the pandemic will continue to have a severe impact on its business until borders progressively open and travel restrictions are lifted.

Healy said the airline hopes to operate at up to 30 percent of its pre-pandemic passenger capacity by the fourth quarter, but that will depend on whether travel and quarantine restrictions are relaxed.

"We remain in an incredibly dynamic situation" because of the Delta variant, and "it is extremely difficult to plan and operate with the constantly changing environment that we're in," he said.

Healy added that although the progress of vaccination is encouraging, the pace and timing of recovery remain uncertain.

CEO Augustus Tang said it's unlikely the carrier will ask staff to take another round of unpaid leave, at least for the time being.

"At the moment, there is no intention to introduce more unpaid leave for the rest of the year," Tang said.

"But of course, as we always say, the situation facing us is extremely uncertain... and so if things change, we cannot take any options off the table."

The Hong Kong carrier is hoping to rein in cash burn to less than HK$1 billion per month for the rest of the year.

______________________________