Cathay predicts $1.3bn half-year loss
Hong Kong’s Cathay Pacific Group anticipates a HK$9.9 billion ($1.3 billion) net loss attributable to shareholders for the six months ended 30 June 2020. This compares with a net profit of HK$1.3 billion for the same period in 2019.
Cathay says this includes impairment charges amounting to approximately HK$2.4 billion, which mainly relate to 16 aircraft that are “unlikely to re-enter meaningful economic service again before the 2021 summer season together with certain airline service subsidiaries assets”.
In June, Cathay Pacific and Cathay Dragon carried a total of 27,106 passengers only, a decrease of 99.1% compared to June 2019. The month’s revenue passenger kilometres (RPKs) fell 98.8% year-on-year. Passenger load factor dropped by 59.3 percentage points to 27.3%, while capacity, measured in available seat kilometres (ASKs), decreased by 96.1%.
The two airlines carried 93,228 tonnes of cargo and mail last month, a decrease of 43.1% compared to June 2019. The month’s revenue freight tonne kilometres (RFTKs) fell 35.8% year-on-year. The cargo and mail load factor increased by 11.7 percentage points to 74.5%, while capacity, measured in available freight tonne kilometres (AFTKs), was down by 45.9%.
Earlier this week, Cathay Pacific’s shareholders passed the resolutions pertaining to the group’s HK$39 billion recapitalisation plan.
Shares in Cathay tumbled to their lowest price in more than 20 years on 15 July over concerns about whether the recapitalisation would be enough to save the airline, and due to a new Covid-19 spike in the city.