Hong Kong’s flagship airline Cathay Pacific was unable to forecast an end to its financial strain, with the Delta variant causing significant problems for one of the few airlines without a domestic market. In its latest results on Wednesday, Patrick Healy, the airline’s chair, said it faced “the most challenging period in our history”, which would continue until borders reopened. “The emergence of new virus variants has led to the tightening of cross-border travel restrictions and quarantine requirements in Hong Kong and in many of our key markets,” he added. “Unlike many of our global peers, who have seen encouraging signs of recovery in some domestic markets, Cathay Pacific remains wholly dependent upon cross-border air travel.” Cathay recorded a HK$7.6b (US$977m) net loss in the first half of 2021, down from HK$9.9bn from the first half of last year, supported by a relatively strong cargo business. The group said it hoped to operate at up to 30% of pre-pandemic passenger capacity by Q4 2021 but “this is dependent on operational and passenger travel restrictions being lifted”. In the first half, Cathay operated at only 5% of pre-pandemic passenger capacity, and 47% of cargo capacity. Healy said cargo capacity was affected by Hong Kong’s 14-day crew quarantine requirements, which were imposed by the government for a period from February but had since eased. Cathay’s cargo business brought in more than 80% of group revenues in the six months. Passenger revenue plummeted 92.8% in the first half of 2021 compared with the same period in 2020.<br/>
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Spain is to acquire three Airbus A330-200s from flag carrier Iberia for conversion into aerial refuelling tankers for its air force. Madrid in late June approved the acquisition of three tanker/transports, allocating E148m this year, as part of a broader agreement with the airframer, which also included helicopters and a commitment to the multi-national European Future Combat Air System. It had been assumed that the order would be for new-build A330 multi-role tanker transport (MRTT) aircraft, which are assembled in Toulouse and then sent for conversion at Airbus Defence & Space’s facility in Getafe near Madrid. But Major General Javier Antonio Guerrero Mochon, head of programmes at the Spanish air force, indicated that the three aircraft will be second-hand assets. An initial example will arrive and be put into service this year without undergoing conversion, he says, and a second aircraft, also still in its passenger configuration, will follow “months later”.<br/>
In a bid to maintain loyalty during one of the toughest travel droughts, Qantas extends its frequent flyer status for customers as a “retention lifeline.” Qantas said the extension will see members hold onto their status until at least June 2023 if customers book one eligible flight before their current membership expires. This will be the fourth time the carrier has extended the program as international and domestic travel continues to be restrained by COVID-19. The tier includes bronze, silver, gold, platinum and platinum one members, each unlocking different benefits through accumulating Status Credits – the more you fly, the more you earn. The announcement impacts only the silver tier and above, and is for Australian and New Zealand members.<br/>