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Cathay Pacific lost nearly a billion in the first half of the year

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Hong Kong-based Cathay Pacific reported Wednesday that it lost $972 million in the first half of 2021 due to a drop in air traffic caused by the Covid-19 outbreak. However, compared to the loss the company saw in the first half of 2020, which was $1.3 billion, this loss is smaller.

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With no domestic market to fall back on, Cathay Pacific was one of the largest global airlines to be affected by the Covid-19 pandemic.

According to company president Patrick Healy, 2021 is the “most challenging time” in the airline’s 70-year history, but progress on vaccinations is encouraging for the industry.

Cathay Pacific was one of the largest global airlines affected by the Covid-19 pandemic due to its lack of a domestic market.

A major financial support package was provided by the Hong Kong government during the pandemic last year.

Hong Kong’s strict and long-term quarantine policy for outbound travelers has kept Covid-19 cases to a minimum.

Cathay Pacific carried only 157,000 passengers in the first half of the year, 96% less than in the same period in 2020, and it only earned $96 million.

In 2020, Cathay Pacific lost $2.8 billion, sinking further into the red with each passing month.

Among other means, the company has had to layoff and encourage early retirement of its employees.

Bloomberg Intelligence analyst James Teo is optimistic about the second half of the year.

“It’s not just the reopening, but also the fact that the load factor on European flights was 40 percent in June and the load factor on flights to and from China was not bad either (29 percent). This could improve with the reopening” of the borders, he estimated, referring to the fact that Hong Kong is gradually relaxing its rules of entry to the territory.

Cathay’s shares were up 1.61 percent Wednesday afternoon after the company released its first-half earnings report.

In fact, Cathay Pacific, which has long been a flagship airline in Asia, had been in the red even before the outbreak.

It was undermined by the political crisis in Hong Kong, months of protests in 2019 that greatly reduced the number of passengers, especially from mainland China, an important market.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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