Cathay Pacific’s half-yearly financial report shows that the company’s losses had been narrowed compared to Q1 2021.
On August 11, 2021, the airline reported a net loss of HK$7.5 billion ($973 million) in the H1 2021, observing a 23% reduction from a net loss of HK$9.8 billion ($1.26 billion) year on year.
“COVID-19 continued to pose significant challenges for the Cathay Group in the first half of 2021, and this continues to be the toughest period in our history,” the chairman of Cathay Pacific, Patrick Healy was quoted in the financial report.
However, the subsequent easing of travel restrictions allowed the airline to revive its cargo and passenger capacity. This enabled them to catalyze their operations in the first half of 2021.
Cathay revealed that they were able to narrow the losses by approximately a quarter because of cost-cutting measures and a strong air cargo demand. The air cargo independently accounts for 80% of the airline’s revenue generated during the past months.
The airline intends to retain more cash in the remaining year and expects a surge in passenger demand by almost 30% of the pre-covid levels in the fourth quarter of 2021.
Despite the new variants of coronavirus and hardened travel restrictions in Hong Kong, Cathay’s financial report shows the airline’s optimism regarding its path to recovery.