Cathay posts record $2.8b loss after extraordinary year

Cathay Pacific reported a net loss of HK$21.65b ($2.8b) for 2020, a period the carrier described as “the most challenging 12 months of its more than 70-year history” as the coronavirus pandemic brought unprecedented disruption to global air travel. The outlook isn’t much better, according to the airline’s results statement Wednesday, in which Chairman Patrick Healy said “it is by no means clear how the pandemic and its impact with develop.” Cathay will persist with its cash preservation measures, including keeping executive pay cuts in place throughout this year. It has also asked employees to sign up for another special leave program in the first half of 2021, to which 80% have agreed. Available unrestricted liquidity at the end of the year stood at HK$28.6b, and Cathay also issued HK$6.74b in convertible bonds in January to secure more funds “in this difficult environment.” The airline expects to operate at well below 50% passenger capacity in 2021.<br/>