Cathay Pacific reports loss of $2.8 billion

Thursday, March 11, 2021

Cathay Pacific Airways recently reported a record annual loss of $2.8 billion (£2 billion) for financial year 2020. The Hong Kong flag-carrier said that the poor results were due to a sharp downturn in travel during the COVID-19 pandemic. The airline has also been affected by major restructuring costs and political disruption in the city.

Cathay had previously warned that 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. Although Cargo was the best performer for the airline, it also saw a downturn, as the reduction in passenger flights, which also carry cargo, caused a reduction in capacity. 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 carrier also announced that 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. Patrick Healy, Chairman, Cathay said in a statement that though the short-term outlook continues to be challenging, the carrier remains absolutely confident in the long-term future and competitive position of the airlines.

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