HONG Kong's flag carrier Cathay Pacific says it has finally managed to curb its massive monthly operating losses and came close to 'operating cash breakeven for the four-month period from July to October.
The airline's chief customer and commercial officer, Ronald Lam, said its financial performance would see a 'considerable improvement' in the second half of the year, though it would still record a 'substantial' loss for 2021 as a whole.
'The second half of the year is typically our peak cargo period. The exceptionally strong cargo season that we are experiencing so far, together with our continued focus on effective cash and cost management, have led to a positive impact on our operating cash burn,' Mr Lam said.
On the passenger side he said the re-opening of Australia's borders for vaccinated Australian citizens, permanent residents and immediate family had been a 'positive development', adding that 'we have already added more capacity and seen an increase in flight bookings'.
Mr Lam said: 'Subject to travel restrictions and other operational constraints due to Covid-19, we expect that our second-half 2021 results will be a considerable improvement on our first-half 2021 results, although our overall losses for the full year 2021 will still be substantial.
'Nevertheless, our operating environment continues to be one of considerable uncertainty. Travel and operational restrictions continue to greatly impact our ability to mount flights and we are still facing many challenges to both our passenger and our cargo business as the Covid-19 situation in different parts of the world continues to evolve.'
The positive financial news for Cathay was offset by renewed concerns over Hong Kong's continued status as an air cargo hub after the global package delivery giant FedEx announced it had given up any hope of reopening its pilot base in the city.
SeaNews Turkey
The airline's chief customer and commercial officer, Ronald Lam, said its financial performance would see a 'considerable improvement' in the second half of the year, though it would still record a 'substantial' loss for 2021 as a whole.
'The second half of the year is typically our peak cargo period. The exceptionally strong cargo season that we are experiencing so far, together with our continued focus on effective cash and cost management, have led to a positive impact on our operating cash burn,' Mr Lam said.
On the passenger side he said the re-opening of Australia's borders for vaccinated Australian citizens, permanent residents and immediate family had been a 'positive development', adding that 'we have already added more capacity and seen an increase in flight bookings'.
Mr Lam said: 'Subject to travel restrictions and other operational constraints due to Covid-19, we expect that our second-half 2021 results will be a considerable improvement on our first-half 2021 results, although our overall losses for the full year 2021 will still be substantial.
'Nevertheless, our operating environment continues to be one of considerable uncertainty. Travel and operational restrictions continue to greatly impact our ability to mount flights and we are still facing many challenges to both our passenger and our cargo business as the Covid-19 situation in different parts of the world continues to evolve.'
The positive financial news for Cathay was offset by renewed concerns over Hong Kong's continued status as an air cargo hub after the global package delivery giant FedEx announced it had given up any hope of reopening its pilot base in the city.
SeaNews Turkey
