Home > > Cathay Pacific says worst of financial crisis behind it as war chest grows to HK$32.8 billion

Cathay Pacific says worst of financial crisis behind it as war chest grows to HK$32.8 billion

06/28/2021| 12:06:07 PM|

Cathay Pacific forecasts it will burn less than HK$1 billion a month from July until the end of this year.

Cathay Pacific has put the worst of its financial crisis behind it and now has more cash than ever before to ride out the Covid-19 fallout, as company executives revealed it would burn through the least amount of money since the pandemic began.

Hong Kong’s flagship carrier forecast it would burn less than HK$1 billion (US$128 million) a month from July until the end of this year, the airline told analysts on Friday.

Aggressive cost-cutting, strict spending discipline and an ongoing restructuring including axing more jobs were credited with preserving a healthier cash balance.

The airline also revealed it had grown its cash war chest by almost two-thirds since the start of the pandemic to an unaudited HK$32.8 billion at the end of May to weather the travel downturn.

The airline still expects a “very substantial loss” in the first half of 2021, but at an amount somewhat lower than the HK$9.87 billion lost in the first half of last year, and HK$11.78 billion in the second half of 2020. Brisk air freight operations have brought in much-needed revenue.

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TAGS: Cathay Pacific | financial crisis
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