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HONG KONG: Hong Kong’s Cathay Pacific Airways said on Wednesday (March 10) that it was focused on preserving cash after posting a record annual loss of HK $ 21.65 billion ($ 2.79 billion), caused by the slowdown. of trips, restructuring costs and amortizations of the fleet.
The 2020 loss compared to 2019 earnings of HK $ 1.69 billion and was worse than the average forecast of a net loss of HK $ 19.9 billion from 13 analysts, according to Refinitiv.
“Market conditions remain challenging and dynamic,” Cathay Chairman Patrick Healy said in a statement. “All of our cash-conserving measures will continue unabated. Executive pay cuts will continue throughout 2021.”
Cathay lacks a domestic market at a time when international borders are largely closed due to the coronavirus pandemic. In December, Cathay passenger numbers were down 98.7 percent compared to the previous year, although freight transport was down 32.3 percent.
Almost 60 percent of its 2020 revenue of HK $ 47.9 billion came from its cargo operations, up from 20 percent in 2019.
The airline said in January it would reduce passenger capacity by 60 percent and cargo capacity by 25 percent as a result of new rules that required crew to quarantine for two weeks at hotels before returning. to normal life in Hong Kong which came into effect on February 20.
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As a result, Cathay has put most of the crew on voluntary lists of three weeks flying, two weeks in a hotel, and two weeks off at home.
Cathay said the quarantine rules would increase cash burning by approximately HK $ 300 million to HK $ 400 million per month, on top of previous levels of HK $ 1 billion to HK $ 1.5 billion.
In January, the airline issued HK $ 6.74 billion in convertible bonds to shore up liquidity.
Cathay said in October it would cut 5,900 jobs to help it weather the pandemic, including nearly all positions at its regional airline Cathay Dragon, which closed.
