ER
CATHAY Pacific Airways estimates the company will lose up to HK$9.9 billion or US$1.28 billion in the first six months of 2020.
According to the South China Morning Post, this will be the biggest loss in the company’s history. The biggest losses previously occurred at the height of the 2008 global financial crisis, when the company lost HK$8.6 billion.
The airline management revealed that this loss was triggered by the COVID-19 pandemic. Cathay’s financial position turned negative in the first half of 2020, after net profit of HK$1.3 billion in the same period last year.
The company said 16 Cathay Pacific and Cathay Dragon aircraft will not resume operations until the summer of 2021, causing a loss of around HK$2.4 billion. This is the first time the airline has estimated how many aircraft are needed to operate an optimal post-pandemic schedule, thus giving a better indication of company size and how many staff will eventually be needed.
The airline has lost up to HK$3 billion a month since February because the pandemic has paralyzed the aviation industry worldwide. After winning shareholder approval on Monday (7/13) to restructure HK$39 billion in capital, Cathay is now turning his attention to overhauling the business to make it suitable for the post-pandemic world.
Quoted from the South China Morning Post, the airline also pocketed HK$680 million from the business world subsidy scheme from the Hong Kong government. Airline would remain cautious and agile to run operational and flight services.
In June, Cathay only carried less than 1 percent of aircraft passenger volume. The company now only serves an average of 900 people per day, far less than the average 100,000 passengers per day. [antaranews/photo special]
