Cathay Pacific has posted a net loss of $973 million in the first half of the year (H1 2021), smaller than last year’s $1.3 billion loss, occasioned by higher cargo demand and cost-cutting measures.
The loss included $64 million of impairment charges mainly related to 11 grounded planes that are unlikely to return to service and $52 million of restructuring costs.
Passenger revenue plunged 93% during the first six months of the year to hit $96 million compared to the same period last year. Passenger capacity decreased by 85%.
Revenue fell 42.7% to $2 billion.
On the flip side, though, demand for air cargo saw the airline’s yields surge 24% and accounted for 80% of all revenue.
The airline has forecast monthly cash burn falling in the second half and capacity rising to as much as 30% of pre-COVID levels in the fourth quarter, banking on quarantine rules for passengers and crew being relaxed.
Cathay said in its announcement that its low-cost carrier HK Express increased its first-half loss, going from $100 million in 2020 to $125 million because it shut down operations during the period. Cathay’s cargo unit Air Hong Kong posted a $48 million after-tax profit, a 3% year-on-year increase due to the strength of the cargo market.
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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