According to Cathay Pacific’s half-yearly financial report, the company’s losses have reduced compared to Q1 2021.
On August 11, 2021, the airline announced a financial loss of HK$7.5 billion ($973 million) in the first half of 2021, a 23 percent decrease from the previous year’s net loss of HK$9.8 billion ($1.26 billion).
“COVID-19 continued to pose major challenges for the Cathay Group in the first half of 2021, and this remains the harshest period in our history,” Cathay Pacific chairman Patrick Healy was quoted in the financial report.
However, the subsequent relaxation of travel restrictions enabled the airline to re-establish its cargo and passenger capacity. As a result, they were able to kickstart their activities in the first half of 2021.
Cathay indicated that cost-cutting strategies and robust air freight demand enabled them to reduce losses by almost a fifth. Air cargo alone represents for 80 percent of the airline’s earnings generated in the last few months.
The airline wants to keep more cash in the next year and anticipates an almost 30 percent increase in passenger demand in the fourth quarter of 2021 compared to pre-covid levels.
Despite new coronavirus strains and tightened travel restrictions in Hong Kong, Cathay Pacific’s financial report demonstrates the airline’s optimism about its recovery.