Cathay CEO outlines rebuild with profit in sight this year

After being hit during the pandemic harder than pretty much any airline still flying, Cathay Pacific Airways Ltd. has a very good chance of posting a net profit this year and returning to full capacity in 2024, according to Chief Executive Officer Ronald Lam. The covid-related disruption had such an impact on Hong Kong air travel that on one day in March last year, Cathay flew just 58 passengers. The situation has improved since a mandatory quarantine was dropped in September, with Cathay’s average daily passenger numbers topping 33,000 in January. But there’s more to do before Lam can restore its standing as one of the world’s premier airlines. “It’s going to be a little bit of a tunnel to still go through,” Lam told Bloomberg Television in one of his first interviews with international media since becoming CEO of the 76-year-old airline on Jan. 1. Cathay — which was rescued by the Hong Kong government in 2020, with its business paralyzed — is “rebuilding as rapidly” as possible, but it’s being constrained by a lack of manpower resources to cope with the sharp rebound in travel demand, said Lam, 50. He welcomed the news that China would start reissuing tourist visas this week. “I’m very optimistic about the traffic flow,” he said. Cathay’s overall passenger capacity should return to about 50% of pre-pandemic levels this month and 70% by year-end, while cargo services — which “kept us alive during Covid” — are expected to be back to 85% by then, Lam said. “There’s quite a lot to rebuild in terms of manpower resources, but I think we’re rebuilding according to our plan,” he said. “I don’t think we are in a crisis mode of any sort.” The staffing challenge is both in the air and on the ground, and not only for Cathay, but for the aviation ecosystem as a whole, Lam said. The airline has “been scrambling to train” pilots who couldn’t fly enough to remain qualified during Covid, when Hong Kong essentially shut down international travel.<br/>