Airline reported report $1.three bln loss in H1 To report r
Airline reported report $1.three bln loss in H1
To report restructuring expenses, impairments in H2
No significant enchancment in passenger enterprise – govt
Provides govt feedback, passenger statistics
SYDNEY, Dec 16 (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd 0293.HK expects a “considerably larger” second-half loss than its report first-half loss, pushed by low demand, restructuring expenses and impairments on its fleet of planes, it mentioned on Wednesday.
The airline reported a HK$9.87 billion ($1.27 billion) loss within the first half because of the pandemic. Analysts had on common forecast a full-year lack of HK$18.three billion earlier than the announcement, based on 13 polled by Refinitiv.
Its earlier report annual loss was HK$8.7 billion in 2008, throughout the international monetary disaster.
“We’re nonetheless not seeing any significant enchancment in our passenger enterprise,” Cathay Chief Buyer and Business Officer Ronald Lam mentioned in an announcement.
The airline reported a 98.6% fall in passenger numbers in November, although a smaller 26.2% decline in cargo carriage.
“Given the gradual velocity of restoration, we count on to function about 9% of pre-COVID-19 capability in December and barely above 10% in January 2021,” Lam mentioned of the passenger enterprise.
Cathay mentioned in October it will lower 5,900 jobs to assist it climate the pandemic, together with almost the entire positions at its regional airline Cathay Dragon, which it shut down.
As a part of the restructuring plan, anticipated to price HK$2.2 billion, the remaining pilots and flight attendants signed new contracts that resulted in everlasting pay cuts.
The airline expects to function lower than 50% of its regular passenger capability in 2021 on account of border closures. Within the first half, it plans to function effectively beneath 25%, nevertheless it forecasts a doable restoration within the second half as COVID-19 vaccines are rolled out extra extensively.
To assist bolster its steadiness sheet within the meantime, Cathay obtained a $5 billion rescue package deal led by the Hong Kong authorities in June.
($1 = 7.7525 Hong Kong {dollars})
(Reporting by Jamie Freed, modifying by Louise Heavens and Mark Potter)
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