'This continues to be our toughest period in our history,' chief financial officer Rebecca Sharpe said.
Losses included HK$500 million of impairment charges mainly related to 11 grounded planes that are unlikely to return to service as well as HK$403 million of restructuring costs.
One bright spot was air cargo demand, which saw yields surge 24 per cent and accounted for 80 per cent of total revenue in the first six months.
The airline last year cut costs with the loss of 5,900 jobs and also ended its regional Cathay Dragon brand.
Remaining pilots and cabin crew based in Hong Kong have been told they must be vaccinated by August 31 or risk losing their jobs.