Cathay Pacific posts deep losses in pandemic year

Cathay Pacific Airways Ltd. swung to a deep loss in 2020, as the Hong Kong flagship carrier’s business remained hammered by the pandemic.

Net loss was 21.65 billion Hong Kong dollars (US$2.79 billion), marking the “most challenging 12 months” in the airline’s history, it said Wednesday.

Revenue slumped 56% to HK$46.93 billion, as passenger traffic volume on all flight routes dived due to border restrictions and quarantine requirements.

The earnings rout came after a series of efforts by Cathay over the past year to stay afloat during the public-health crisis.

In October, the company slashed around 8,500 jobs, a few months after unveiling a government-led bailout package of US$5 billion.

Cathay has warned of “extremely challenging” conditions in the first few months of 2021, as Hong Kong has tightened movement curbs for the city’s pilots and cabin crew. Its passenger traffic and capacity plunged more than 90% in January, while its passenger load factor–the proportion of seats sold–plummeted to the lowest ever on record of 13.3%.

“Our short-term outlook continues to be challenging,” Cathay said.

Yifan Wang

source:marketwatch.com