Cathay to pay government deferred dividend as fortunes rise

Cathay Pacific Airways Ltd. will pay an outstanding dividend of HK$1.52b ($194m) to the Hong Kong government at the end of the month, in another sign the carrier’s financial fortunes are turning the corner after Covid. Hong Kong’s flagship airline also said it won’t need to utilize a government HK$7.8b bridge loan that’s due to expire later this week. The outstanding dividend payment on the preference shares held by the Hong Kong government will be made on June 30, it added. Cathay CEO Ronald Lam said the repayment reflected his confidence in the airline and its financial health. “Our journey of rebuilding Cathay for Hong Kong is on the right track, and now is the appropriate time to begin repaying the support that the government has shown us,” Lam said. “As travel restrictions get lifted and travel demand returns, our group, further to being overall operating cash generative in 2022, has continued to be operating cash generative so far in 2023.”<br/>