Cathay Pacific delivers upbeat outlook despite $637mn H1 loss

Cathay Pacific said it expects to stop burning cash in the second half as the group narrowed its losses and delivered its most positive outlook in years after the city shortened its quarantine requirements. In results published on Wednesday, the Hong Kong-listed airline reported a loss of HK$5b ($637m) for the first half of 2022, compared with a HK$7.6b loss over the same period last year and said it was optimistic about the outlook for the rest of the year. “On the expectation that borders will reopen, our teams have been actively preparing to meet the rising global demand for travel,” Cathay’s chair Patrick Healy told reporters. The company is confident that its “airlines and subsidiaries will see a stronger second-half than first-half performance”. Cathay said it expects “positive cash flow” in the second half of 2022, while HSBC analysts said they believe the airline returned to profit in July. In March, Cathay reported that it was burning up to HK$1.5bn a month because of strict quarantine rules for international travellers. The airline has forecast that by the end of the year, passenger traffic will rise to 25% of pre-pandemic levels and cargo capacity to 65%. As of June, it was operating at only 11% of pre-pandemic passenger capacity and 56 per cent of cargo traffic. Higher cargo revenues have been an important factor in its improved performance. Cathay also been suffering from an exodus of pilots prompted by the tough quarantine rules and is looking to hire 4,000 staff including pilots by next year.<br/>