SYDNEY (AUSTRALIA) – Hong Kong’s Cathay Pacific Airways Ltd said on Friday that it expects a first-half net loss of HK$9.9 billion (£1.03 billion). This includes impairment charges on 16 aircraft.
The airline earlier had recorded a “substantial” first-half loss and it spent between HK$2.5 billion and HK$3 billion each month since February.
The predicted first-half loss will be the airline’s biggest in a decade. It had clocked a profit of HK$1.35 billion in the first half of 2019 before a wave of anti-government protests and coronavirus outbreak gave it a double whammy.
“The landscape of international aviation remains incredibly uncertain with border restrictions and quarantine measures still in place across the globe,” said Ronald Lam, Cathay Chief Customer and Commercial Officer.
Cathay Pacific had received a $5 billion rescue package from the Hong Kong government last month. It said it planned to operate 7% of normal passenger capacity in July and bringing it to 10% in August.
The airline will also incur impairment charges to the tune of HK$2.4 billion that mainly relates to the 16 aircraft that are unlikely to be pressed into service before the 2021 summer season.
Cathay Pacific said tough decisions would be taken in the fourth quarter after reviewing its business model.
The airline has also welcomed government job subsidies so that it can retain its Hong Kong-based staff through August.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field
