In this picture taken on Aug 10, 2014, a woman walks past check-in counters for Hong Kong flag carrier Cathay Pacific at Hong Kong's international airport.
(DALE DE LA REY / AFP)
Hong Kong's Cathay Pacific Airways Ltd posted on Wednesday a first-half loss of HK$5 billion (US$637 million), narrowing from the prior year's HK$7.57 billion, as easing quarantine rules boosted passenger numbers.
The airline said in June it expected a lower first-half loss than the prior year, though it warned the figure would still be "substantial".
First-half revenue rose 17 percent to HK$18.6 billion, driven by a rise in ticket sales and persistent strong demand for air cargo, although passenger numbers stayed 95.2 percent below pre-pandemic levels in June
First-half revenue rose 17 percent to HK$18.6 billion, driven by a rise in ticket sales and persistent strong demand for air cargo, although passenger numbers stayed 95.2 percent below pre-pandemic levels in June.
Cathay reiterated that it expected passenger capacity to approach up to 25 percent of pre-pandemic levels by year-end, up from 11 percent in June, and was now targeting a positive cash flow position.
Its ability to add flights is crimped by rules for air crew on passenger jets to spend three days in quarantine in hotels upon returning home.
READ MORE: Cathay Pacific forecasts narrower loss in first half
"We will only be able to operate more flight capacity when the existing stringent travel restrictions and quarantine requirements applicable to Hong Kong-based aircrew are lifted," Chairman Patrick Healy said in a statement.
As restrictions ease, the airline is preparing to bring back more planes from storage to restore Hong Kong's status as an air transport hub.
Cathay said it expected financial results to improve in the second half from the first. The airline is expected to report a full-year loss of HK$4.5 billion, according to the average of 11 analyst estimates compiled by Refinitiv.