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CATHAY Pacific Airways Ltd expects to reduce its cash disbursements to less than HK$1 billion or equivalent to US$128.84 million per month in the second half of this year. The Hong Kong airline has spent up to HK$1.9 billion a month in cash in the first half due to crew quarantine restrictions.
According to Cathay Chief Financial Officer Rebecca Sharpe said that spending would drop in the second half as rules were relaxed for vaccinated crews and capacity building. Until now Cathay only operates 8% of its usual passenger capacity as the number of passengers has also fallen by more than 99% due to international border restrictions.
“There has been no significant change in recent months in the dramatic impact of COVID-19 on passengers to Hong Kong. Cathay hopes to increase capacity to 20% from pre-COVID levels in August. Given that some Chinese students will return to the United States and UK to study and that could increase to 30% in the fourth quarter as travel restrictions to Singapore and mainland China ease,” he said.
Sharpe explained, meanwhile, Cathay’s losses in the first half are expected to be somewhat lower than last year, due to cost-saving measures and strong demand for cargo flights.
“Currently, 89 of Cathay’s 239 aircraft are in long-term storage in Australia and Spain. This Cathay Pacific has HK$32.8 billion of available liquidity and will consider raising more funds if it can be done at a reasonable cost,” Sharpe concluded. [kontan.co.id/photo special]
