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Cathay Pacific is flying into a $1.3 billion loss

07/17/2020| 7:40:00 PM|

Passenger load factor for the airline and its Cathay Dragon unit was just 27.3 per cent in June.

Cathay Pacific Airways is likely to post a first-half net loss of about HK$9.9 billion ($1.3 billion) after flying only 27,106 passengers last month, down 99.1 per cent from June 2019.

Passenger load factor for the airline and its Cathay Dragon unit was just 27.3 per cent in June, the carrier said. The international aviation landscape remains "incredibly uncertain" because of coronavirus-related border restrictions, Chief Customer and Commercial Officer Ronald Lam said.

With its finances and prospects looking increasingly strained, Cathay last month proposed a HK$39 billion government-backed rescue plan that was approved by shareholders.

The Hong Kong government gets a 6.08 per cent stake in Cathay through an entity called Aviation 2020 and has placed two observers on the airline's board.

The rescue included a rights issue of 7 shares for every 11 held, at a subscription price of HK$4.68 apiece. 

While the funding helps Cathay stave off collapse, a fresh wave of virus cases in Hong Kong and stricter social distancing measures in the city have added more uncertainty to its outlook.

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TAGS: Cathay Pacific Airways | Cathay Dragon | passenger load factor
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