Cathay Pacific Group bullish on recovery

August 23rd 2022

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Hong Kong’s Cathay Pacific Group has reported an interim loss, to June 30, of HK$5 billion (US$637.8 million) 34% lower than the HK$7.6 billion loss of a year ago. Read More »

While optimistic passenger traffic is recovering and cargo revenue will remain strong, capacity continues to be “severely constrained by a bottle neck on crewing resources under existing quarantine requirements” imposed by the Hong Kong Special Administrative Region (HKSAR), the airline said.

The group plans for 25% of pre-pandemic passenger capacity and 65% of cargo capacity by year-end as forward bookings for the December-January peak season increase over 2021.

In early August, the HKSAR reduced compulsory hotel quarantine for arriving passengers from seven to three days with a second relaxation forecast for November at the latest.

Cathay Pacific Group chairman, Patrick Healy, said the adjustments “are expected” to improve travel sentiment. The trend “gives us confidence our airlines and subsidiaries will see a stronger second-half than the first-half performance”, he said. “However, the results from associates, of which the majority report three months in arrears, will remain challenging.”

The group’s available unrestricted liquidity is HK$26.7 billion. In June the HKSAR extended the draw down period for a HK$7.8 million bridge loan to the group by 12 months to June 2023.