An aircraft operated by Cathay Pacific Airways approaches Hong Kong International Airport in Hong Kong, Aug 10, 2021. (PHOTO/BLOOMBERG)
Cathay Pacific Airways forecast that its passenger capacity could rise to as much as 30 percent of the pre-pandemic level in the fourth quarter of the year but cautioned that figure hinges on a vaccine rollout as well as the easing of travel restrictions and quarantine rules.
The Hong Kong flagship airline made the prediction on Wednesday after reporting a 93 percent slump in passenger revenue in the first half of 2021 as international travel ground to a near halt due to the coronavirus pandemic. Passenger planes were only 18.9 percent full in the first six months, with a daily average of 868 passengers.
The carrier posted a net loss of HK$7.6 billion (US$977 million) from January till June, narrowing from the HK$9.9 billion loss reported in the same period a year earlier
The carrier posted a net loss of HK$7.6 billion (US$977 million) from January till June, narrowing from the HK$9.9 billion loss reported in the same period a year earlier, thanks to the strong performance of its air cargo business and cost-cutting measures. Its revenue slumped by 43 percent year-on-year to HK$15.9 billion.
Although there was a slight improvement in passenger business with strong demand for recently resumed Chinese mainland flights and increased demand from Taiwan region and some Southeast Asian markets, the recovery was still affected by travel restrictions, said Ronald Lam, Cathay Pacific’s chief customer and commercial officer.
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The carrier operated only a small portion of its pre-pandemic passenger schedule last month, said Patrick Healy, the airline’s chairman. It made just HK$748 million from passenger business during the first six months of the year, a drop of 93 percent year-on-year.
The company will continue to implement the cash retention measures that were introduced in 2020 and aims to burn through less than HK$1 billion monthly for the rest of the year, Healy said, adding that he is confident in Cathay Pacific's long-term prospects and the outlook for Hong Kong as a major international aviation hub.
Last June, the Hong Kong government came to the rescue of Cathay Pacific through a HK$39 billion recapitalization plan.
Four months later, the airline announced it would cease operations of its subsidiary Dragonair and cut 8,500 jobs in a bid to stay afloat.
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The company said on Monday that it will postpone the payment of dividends that were due and payable to holders of preferred shares on Thursday, marking the second postponement following an earlier one in February.
Cathay Pacific’s shares closed at HK$6.42 on the Hong Kong Stock Exchange on Wednesday, up 3.55 percent.
suzihan@chinadailyhk.com