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Cathay Pacific warns of capacity cuts, higher cash burn

01/26/2021| 11:53:39 AM|

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

Cathay Pacific Airways warned passenger capacity could be cut by about 60% and monthly cash burn may rise if Hong Kong installs new measures that require flight crew to quarantine for two weeks.

Hong Kong's flagship carrier said the expected move will increase cash burn by about HK$300 million (USD 38.7 million) to HK$400 million per month, on top of current HK$1 billion to HK$1.5 billion levels.

Hong Kong is set to require flight crew entering the Asian financial hub for more than two hours to quarantine in a hotel for two weeks, the South China Morning Post reported last week.

"The new measure will have a significant impact on our ability to service our passenger and cargo markets," Cathay said in a statement, adding that expected curbs will also reduce its cargo capacity by 2%.

The airline, in an internal memo seen by Reuters, requested for volunteers among its crew who could fly for three weeks, followed by two weeks of quarantine and 14 days free of duty, adding it will be a temporary measure and not all its flights will require such an operation.

In December, Cathay's passenger numbers fell by 98.7% compared to a year earlier, though cargo carriage was down by a smaller 32.3%.

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TAGS: Hong Kong | Cathay Pacific | airline crew quarantine
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