Cathay Pacific Posts $2.8 Billion Loss in Toughest Year Ever
Bloomberg 3/10/2021
Cathay Pacific Airways Ltd. reported a net loss of HK$21.65 billion ($2.8 billion) for 2020, a period the carrier described as “the most challenging 12 months of its more than 70-year history” as the coronavirus pandemic brought unprecedented disruption to global air travel.
The outlook isn’t much better, according to Chairman Patrick Healy, who said “it is by no means clear how the pandemic and its impact will develop.” Hong Kong has largely closed its borders to non-residents and imposed 21-day mandatory hotel quarantine on those who return. Cathay expects to operate at well below 50% passenger capacity in 2021.
Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it was focused on preserving cash after it posted a record annual loss of 21.65 billion Hong Kong dollars ($2.79bn), caused by a travel downturn, restructuring costs and fleet reductions.
It described 2020 as “the most challenging 12 months of its more than 70-year history” as the coronavirus pandemic brought unprecedented disruption to global air travel.
The 2020 loss compared with 2019 profit of 1.69 billion Hong Kong dollars ($218m) and was worse than an average forecast for a net loss of 19.9 billion Hong Kong dollars ($2.56bn) by 13 analysts, according to data provider Refinitiv.
“Market conditions remain challenging and dynamic,” Cathay Pacific Chairman Patrick Healy said in a statement. “All our cash preservation measures will continue unabated. Executive pay cuts will remain in place throughout 2021.”
Cathay Pacific posts record loss
CHALLENGING: The road to recovery would depend on how effective and widespread global vaccination programs are, said the airline, which posted a US$2.8 billion loss
AFP, HONG KONG
Hong Kong carrier Cathay Pacific Airways Ltd (國泰航空) yesterday said it suffered a record US$2.8 billion loss last year as the COVID-19 pandemic wiped out demand for travel and the airline warned of a long road to recovery ahead.
Cathay chairman Patrick Healy described last year as the “most challenging” in the airline’s 70-year history and said much would depend on how effective and widespread global vaccination programs are.
Cathay Pacific posts record annual loss of $2.8-billion, focuses on preserving cash Jamie Freed Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
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ANTHONY WALLACE/AFP/Getty Images
Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it was focused on preserving cash after it posted a record annual loss of HK$21.65 billion ($2.79 billion), caused by a travel downturn, restructuring costs and fleet writedowns.
The 2020 loss compared with 2019 profit of HK$1.69 billion and was worse than an average forecast for a net loss of HK$19.9 billion by 13 analysts, according to Refinitiv.
Cathay Pacific Posts $2.8 Billion Loss in Toughest Year Ever
Bloomberg 3/10/2021
Cathay Pacific Airways Ltd. reported a net loss of HK$21.65 billion ($2.8 billion) for 2020, a period the carrier described as “the most challenging 12 months of its more than 70-year history” as the coronavirus pandemic brought unprecedented disruption to global air travel.
The outlook isn’t much better, according to Chairman Patrick Healy, who said “it is by no means clear how the pandemic and its impact will develop.” Hong Kong has largely closed its borders to non-residents and imposed 21-day mandatory hotel quarantine on those who return. Cathay expects to operate at well below 50% passenger capacity in 2021.