Cathay Pacific Group posts US$1.2 billion loss as revenues fall 48.3pc

HONG KONG's Cathay Pacific Group posted an HK$9

13 August 2020 - 19:00
HONG KONG's Cathay Pacific Group posted an HK$9.8 billion (US$1.2 billion) net loss in the first half, drawn on revenues of HK$27.6 billion, down 48.3 per cent year on year.

Passenger revenue decreased 72.2 per cent to HK$10.3 billion in the first half of 2020. Revenue passenger kilometres decreased by 72.6 per cent. This loss reflects Covid-driven restrictions, border controls and quarantines.

Cargo yield increased by 44.1 per cent in the first half and revenues were up 8.8 per cent to HK $11.1 billion.

There was an imbalance between capacity and demand in the cargo market, which led to higher cargo revenues compared to the first half of 2019. Cargo revenue in the first half of 2020 was HK$11.1 billion, an increase of 8.8 per cent compared to the same period in 2019.

Available freight tonne kilometre capacity fell 31 per cent, reflecting the loss of available passenger flights. Half the cargo is carried in passenger aircraft belly holds.

As a result, overall tonnage carried decreased by 31.9 per cent to 667 thousand tonnes. The load factor increased 5.9 percentage points to 69.3 per cent.

'We reached agreement with Airbus to defer delivery of our A350-900s and A350-1000s from 2020 and 2021 to the 2020-2023 period, and our A321neos from 2020-2023 to the 2020-2025 period. And we are in advanced negotiations with Boeing for the deferral of our 777-9 deliveries,' said the Cathay statement.

'We are also relocating one third of our passenger aircraft to Alice Springs, and we are in discussions with other locations as well.' it said.

The HK$39 billion recapitalisation, announced in June, has been completed. 'This investment shows confidence in the long-term future of Cathay Pacific, and in our ability to continue to play a critical leadership role in the development of the Hong Kong aviation hub.' said the statement.

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