Cathay Pacific expects H2 loss to be significantly higher than in H1
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Last Updated: Dec 16, 2020, 02:49 PM IST
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The airline reported a HK$9.87 billion ($1.27 billion) loss in the first half due to the pandemic. Analysts had forecast the airline would report a full-year loss averaging HK$18.3 billion before the announcement, according to 13 polled by Refinitiv.
SYDNEY: Hong Kong s Cathay Pacific Airways Ltd said on Wednesday it expects a significantly higher second-half loss than its record first-half loss, driven by low demand, restructuring charges and impairments on its fleet of planes.
The airline reported a HK$9.87 billion ($1.27 billion) loss in the first half due to the pandemic. Analysts had forecast the airline would report a full-year loss averaging HK$18.3 billion before the announcement, according to 13 polled by Refinitiv.
Cathay Pacific sees second-half loss significantly higher than first half reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
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As part of the restructuring plan, expected to cost HK$2.2 billion, the remaining pilots and flight attendants signed new contracts that resulted in permanent pay cuts.
The airline expects to operate less than 50% of its normal passenger capacity in 2021 due to border closures. In the first half, it plans to operate well below 25%, but it forecasts a possible recovery in the second half as COVID-19 vaccines are rolled out more widely.
To help bolster its balance sheet in the meantime, Cathay received a $5 billion rescue package led by the Hong Kong government in June.
($1 = 7.7525 Hong Kong dollars) (Reporting by Jamie Freed, editing by Louise Heavens and Mark Potter)
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By Reuters Staff
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SYDNEY (Reuters) -Hong Kong’s Cathay Pacific Airways Ltd expects a “significantly higher” second-half loss than its record first-half loss, driven by low demand, restructuring charges and impairments on its fleet of planes, it said on Wednesday.
FILE PHOTO: An aircraft of Cathay Pacific is seen in front of air traffic control tower at the Hong Kong International Airport, Hong Kong, China October 24 2020. REUTERS/Tyrone Siu/File Photo
The airline reported a HK$9.87 billion ($1.27 billion) loss in the first half due to the pandemic. Analysts had on average forecast a full-year loss of HK$18.3 billion before the announcement, according to 13 polled by Refinitiv.