The Manila Times

Cathay Pacific narrows H1 loss, eyes better end to year

HONG KONG: Cathay Pacific Airways reported on Wednesday that its losses had narrowed in the first half of 2022 after an “extremely difficult start” to the year, but said its capacity would improve in the coming months as travel sentiment improved.

The $637-million loss in January to June was narrower than the $968-million deficit incurred in the same period last year, as the Hong Kong airline benefited from strong cargo demand and cost-cutting measures.

Chairman Patrick Healey said in a statement that the first few months were “particularly unfavorable” as coronavirus pandemic-related travel restrictions severely constrained Cathay’s flight operations and greatly affected demand for travel.

But he added that the carrier was gearing up for the reopening of borders and expected a stronger second-half result.

Cathay aims to boost passenger flight capacity to a quarter of pre-pandemic levels by the end of 2022, while it is looking to lift cargo capacity to 65 percent.

The airline carried 335,000 passengers in the first six months, more than double that in the same period in 2021, bringing in $263 million in revenue. Income from its cargo unit jumped 9.3 percent to $1.5 billion.

Total revenue was up 17 percent year on year to $2.4 billion.

Hong Kong has taken tentative steps toward reopening its borders after being internationally isolated for two-and-ahalf years owing to strict Covid-19 rules for travelers.

On Monday, authorities said visitors would now have to spend just three days in hotel quarantine, down from seven and much lower than the three weeks earlier in the year.

Cathay praised the adjustments as “positive steps,” but pressed the government to “urgently provide a clear roadmap” to remove all pandemic-related restrictions on passengers and air crew.

The firm’s ability to operate more flights “continues to be severely constrained by a bottleneck on crewing resources under the existing quarantine requirements,” Healey said on Wednesday.

Last month, Hong Kong also suspended a circuit-breaker mechanism that penalized airlines for bringing in coronavirus cases. This has affected numerous Cathay routes, including for key markets, such as the United States and the United Kingdom.

The airline operated just 29 destinations in January, compared with more than 100 before the pandemic.

Hong Kong authorities are hinting at a potential international reopening in November, timed to coincide with the high-profile Rugby Sevens tournament and a banking summit.

Cathay is bringing aircraft parked overseas back to Hong Kong and is aiming to hire more than 4,000 frontline employees over the next 18 to 24 months.

In June, Hong Kong also extended the drawdown period of a $1-billion bridge loan to Cathay — the second time in two years — as part of a $5-billion government bailout to help the airline weather the pandemic.

The carrier suffered a reputational blow earlier this year when a coronavirus outbreak was traced to two of its flight attendants who breached their quarantine rules. They were fired and later prosecuted.

Foreign Business

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2022-08-11T07:00:00.0000000Z

2022-08-11T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/281900186984769

The Manila Times