Cathay Pacific posts record $1.27b H1 loss amid pandemic

Hong Kong’s Cathay Pacific Airways reported a record HK$9.87b ($1.27b) H1 loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic. The figure was in line with the HK$9.9b forecast it had flagged last month and included HK$2.47b of impairment charges. Revenue plunged 48.3% to HK$27.7b in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%. The airline, which received a $5b rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter. “Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” chairman Patrick Healy said Wednesday. It has rearranged its aircraft order book with Airbus to delay deliveries, is in advanced talks with Boeing to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.<br/>