Cathay Pacific forecasts bumper profit with bonuses for staff
Cathay Pacific Airways said it will provide bonuses of up to six weeks pay to employees after announcing that its net income for the first half of 2023 could reach as high as HK$4.5b ($576m) as it bounces back from Covid-19. Cathay’s shares jumped as much as 6.3% after the midday trading break in Hong Kong, hitting the highest this year. Hong Kong’s main airline is finally joining an industry-wide revival in fortunes as travel demand soars despite more expensive airfares. If the first-half profit comes in as forecast, it would be Cathay’s biggest since 2010, even though it is still only operating at about half of its pre-Covid-19 passenger capacity. Cathay posted a loss HK$5b in the first six months of 2022, when Hong Kong was still saddled with travel restrictions. The airline’s expectations for the first half already top the average full-year forecast of analysts for annual profit of HK$4.2b. “The Covid-19 pandemic was the most challenging period in our history,” CEO Ronald Lam said Friday, noting that the carrier recorded almost HK$34b in losses over three years. “We are moving further and further away from those difficult days with each week that passes.” In what the company calls a “special appreciation reward”, Cathay will pay staff who stayed through the pandemic up to six weeks’ salary in September, Mr Lam said. A profit-sharing programme will also be introduced for 2023 to 2025, he said, adding that details on that will be shared in August.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-07-17/oneworld/cathay-pacific-forecasts-bumper-profit-with-bonuses-for-staff
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Cathay Pacific forecasts bumper profit with bonuses for staff
Cathay Pacific Airways said it will provide bonuses of up to six weeks pay to employees after announcing that its net income for the first half of 2023 could reach as high as HK$4.5b ($576m) as it bounces back from Covid-19. Cathay’s shares jumped as much as 6.3% after the midday trading break in Hong Kong, hitting the highest this year. Hong Kong’s main airline is finally joining an industry-wide revival in fortunes as travel demand soars despite more expensive airfares. If the first-half profit comes in as forecast, it would be Cathay’s biggest since 2010, even though it is still only operating at about half of its pre-Covid-19 passenger capacity. Cathay posted a loss HK$5b in the first six months of 2022, when Hong Kong was still saddled with travel restrictions. The airline’s expectations for the first half already top the average full-year forecast of analysts for annual profit of HK$4.2b. “The Covid-19 pandemic was the most challenging period in our history,” CEO Ronald Lam said Friday, noting that the carrier recorded almost HK$34b in losses over three years. “We are moving further and further away from those difficult days with each week that passes.” In what the company calls a “special appreciation reward”, Cathay will pay staff who stayed through the pandemic up to six weeks’ salary in September, Mr Lam said. A profit-sharing programme will also be introduced for 2023 to 2025, he said, adding that details on that will be shared in August.<br/>
