TravelNews

[Travel News]: Cathay Pacific posts record USD 2.8 billion annual loss, focuses on preserving cash

TheTourAttraction.com aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. TheTourAttraction.com look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information TheTourAttraction.com provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

The following is the [Travel News]: Cathay Pacific posts record USD 2.8 billion annual loss, focuses on preserving cash from [Channel News Asia] recommended by TheTourAttraction.com:

In December, Cathay’s passenger numbers fell by 98.7% compared with a year earlier.

Hong Kong’s Cathay Pacific Airways said on Wednesday (Mar 10) it was focused on preserving cash after it posted a record annual loss of HK$21.65 billion (USD 2.79 billion), caused by travel downturn, restructuring costs and fleet writedowns.

The 2020 loss compared with 2019 profit of HK$1.69 billion and was worse than an average forecast for a net loss of HK$19.9 billion by 13 analysts, according to Refinitiv.

“Market conditions remain challenging and dynamic,” Cathay Chairman Patrick Healy said in a statement. “All our cash preservation measures will continue unabated. Executive pay cuts will remain in place throughout 2021.”

Cathay lacks a domestic market at a time when international borders are largely closed because of the coronavirus pandemic. In December, Cathay’s passenger numbers fell by 98.7% compared with a year earlier, though cargo carriage was down by a smaller 32.3%.

Nearly 60% of its 2020 revenue of HK$47.9 billion was from its cargo operations, up from around 20% in 2019.

The airline said in January it would cut passenger capacity by 60% and cargo capacity by 25% as a result of new rules that required crew to quarantine for two weeks in hotels before returning to normal life in Hong Kong that took effect on Feb 20.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button