Cathay Pacific 2019 profits plunge, predicts virus losses

Cathay Pacific on Wednesday said profits plunged in 2019 as it reeled from political unrest in Hong Kong, while it warned financial losses lay ahead owing to the spread of the new coronavirus. The carrier was battered throughout the second half of last year as violent pro-democracy protests raged for months in Hong Kong. The demonstrations hammered tourist arrivals into the city, traditionally one of the world's busiest transport hubs. On Wednesday the carrier reported an attributable profit of HK$1.7b (US$220m) for 2019, a significant drop from the HK$2.3b it made in 2018. And it warned of slipping into the red as airlines around the world suffer the huge travel disruptions caused by the rapid global spread of the deadly coronavirus. "We expect to incur a substantial loss for the first half of 2020," chairman Patrick Healy said. "We expect our passenger business to be under severe pressure this year and that our cargo business will continue to face headwinds," he added. The last time the airline made a loss was in the first half of 2018. It then embarked on a major overhaul that brought the carrier back into the black but Cathay has found itself hammered by events beyond its control.<br/>