Cathay Pacific has posted an annual loss of $720 million for FY 2021, lower than its 2020 loss even as Hong Kong remained under tight coronavirus travel restrictions.
The improvement was driven by strong cargo demand and cost cutting measures.
However, the airline maintains that it expects to resume burning cash because of stricter crew quarantine measures. The airline forecasts it will burn through $128 million to $193 million of cash a month starting in February after the government tightened crew quarantine restrictions, forcing the airline to cut cargo and passenger capacity sharply.
The airline said for this month, it is operating about 2% of its pre-pandemic passenger capacity and around 20% of its pre-pandemic cargo capacity.
Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub at Hong Kong International Airport. The airline’s operations and subsidiaries have scheduled passenger and cargo services to more than 190destinations in more than 60 countries worldwide, including codeshares and joint ventures.
Cathay Pacific is the world’s tenth-largest airline measured by sales and the fourteenth largest measured by market capitalization. It is also the fifth-largest cargo airline in the world.
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