Sunday, April 14, 2024

Cathay Pacific reports £2bn loss for the year | News

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Cathay Pacific Airways has reported a record annual loss of $2.8 billion (£2 billion) for financial 2020.

The Hong Kong flag-carrier said the poor results were due to a sharp downturn in travel during the Covid-19 pandemic.

Major restructuring costs and pollical disruption in the city have also taken a toll on the airline.

Cathay had previously warned it expected its second-half losses to be worse than the record first-half loss of $1.3 billion.

The annual loss compares to a profit of $220 million in 2019.

Cargo was the best performer for the airline, though it too saw a downturn, because the reduction in passenger flights, which also carry cargo, caused a reduction in capacity.

“Our short-term outlook continues to be challenging.

“However, we remain absolutely confident in the long-term future and competitive position of our airlines,” Cathay chairman, Patrick Healy, said.

In October, Cathay Pacific announced it would close its subsidiary Cathay Dragon, a regional carrier flying mainly to mainland China and other Asian destinations.

The beleaguered carrier also announced it would cut an additional 8,500 jobs, amounting to about a quarter of its staff.

The cost-cutting move came after the airline received a $5 billion bailout from the Hong Kong government in June.

Hong Kong Tourism Board yesterday unveiled a £127 million plan to restart the hospitality sector in the city.


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