Airline nearing completion of strategic evaluate Capability
Airline nearing completion of strategic evaluate
Capability may get well in H2 2021 if vaccine broadly adopted
Passenger numbers fell 98.1% in Sept., cargo down 36.6%
Provides particulars of first half capability forecast, passenger numbers
SYDNEY, Oct 19 (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd 0293.HK mentioned on Monday it expects to function lower than 50% of its pre-pandemic passenger flight capability in 2021 because it nears completion of a strategic evaluate that would result in main job losses.
The airline mentioned it deliberate to function round 10% of its pre-pandemic capability for the rest of 2020, with most borders remaining closed.
The airline trade has been laborious hit by the coronavirus pandemic as many international locations imposed journey restrictions to include its unfold. Lots of the curbs nonetheless stay in place.
“Among the many a number of eventualities studied, this one is already probably the most optimistic that we will responsibly undertake at this second,” Cathay mentioned within the launch of its month-to-month visitors figures to the inventory alternate.
The airline mentioned it assumed it could be working nicely under 25% of pre-pandemic capability within the first half of 2021 however that there can be a restoration within the second half if vaccines at the moment below improvement proved efficient and are broadly adopted in its key markets by the center of 2021.
In September, the airline’s passenger numbers fell by 98.1% in contrast with a yr earlier, although cargo carriage was down by a smaller 36.6%.
Cathay had in June mentioned it was reviewing its technique in mild of the journey downturn, with “powerful selections” to be introduced in the course of the fourth quarter.
The South China Morning Put up reported on Monday the Cathay board was anticipated to again a restructuring plan this week that included workers redundancies and pay cuts, citing unnamed sources.
In response, Cathay advised Reuters it declined to touch upon hypothesis.
Singapore Airways Ltd SIAL.SI has introduced plans to chop round 20% of positions, whereas Australia’s Qantas Airways Ltd QAN.AX has mentioned it can reduce almost 30% of its pre-pandemic workers, however Cathay has thus far avoided main job cuts.
Cathay has despatched round 40% of its passenger fleet to much less humid places exterior Hong Kong for storage.
(Reporting by Jamie Freed; Modifying by Himani Sarkar and Ana Nicolaci da Costa)
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