Cathay Pacific pledges to rebuild Hong Kong hub status

Wednesday, June 8, 2022

The Hong Kong government has agreed to extend the drawdown period of a HK$7.8 billion loan to Cathay Pacific for a further 12 months until June 2023.

The bridge loan was provided to the airline as part of a HK$39 billion recapitalisation in June 2020 to support the carrier amid the industry-wide downturn due to COVID-19.

The airline is progressively adding back capacity following the recent adjustments to Hong Kong’s travel restrictions and quarantine requirements and said it remains committed to rebuilding connectivity at the Asian hub.

Chief executive Augustus Tang said that they are grateful to the Hong Kong SAR government for its ongoing support, and its continued confidence in the long-term future of Cathay Pacific despite the short-term challenges of the pandemic.

Since the beginning of the COVID-19 crisis, we have remained focused on prudent cash management.

Despite the difficult operational environment, they have not had to draw down the facility over the past 12 months.

The further extension of the drawdown period is greatly appreciated and will provide us with flexibility to manage our liquidity position.

The Cathay Pacific Group’s liquidity remains at a “healthy level” of HK$30.3 billion at the end of 2021, compared to HK$28.6 billion at the end of 2020.

Tang added that the unprecedented impact of the pandemic has necessitated some very difficult decisions, namely our restructuring in 2020, but through this and their recapitalisation, they have created a more efficient, more competitive and more focused business.

They have already recommenced hiring as they plan for the anticipated recovery in Hong Kong and global aviation in the 18-24 month period ahead.

As the Hong Kong’s home airline, they remain resolutely committed to keeping the Hong Kong hub safely and reliably connected just as they have for more than 75 years.

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