{"id":8474,"date":"2020-08-12T00:21:02","date_gmt":"2020-08-12T05:21:02","guid":{"rendered":"http:\/\/planesintheair.com\/?p=8474"},"modified":"2020-08-12T00:22:22","modified_gmt":"2020-08-12T05:22:22","slug":"cathay-pacific-posts-record-1-27-billion-first-half-loss","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=8474","title":{"rendered":"Cathay Pacific Posts Record $1.27 Billion First Half Loss"},"content":{"rendered":"\n
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Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong<\/figcaption><\/figure>\n\n\n\n

SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd reported a record HK$9.87 billion ($1.27 billion) first-half loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic.<\/p>\n\n\n\n

The figure was in line with the HK$9.9 billion forecast it had flagged last month and included HK$2.47 billion of impairment charges.<\/p>\n\n\n\n

Revenue plunged 48.3% to HK$27.7 billion in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%.<\/p>\n\n\n\n

The airline, which received a $5 billion rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter.<\/p>\n\n\n\n

“Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” Chairman Patrick Healy said in a statement on Wednesday.<\/p>\n\n\n\n

It has rearranged its aircraft order book with Airbus SE to delay deliveries, is in advanced talks with Boeing Co to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.<\/p>\n\n\n\n

The airline said last month that it had reduced its monthly cash burn to about HK$1.5 billion from between HK$2.5 billion and HK$3 billion while maintaining a minimal flying schedule.<\/p>\n\n\n\n

Cathay is expected to report a full-year loss of around HK$13.6 billion, according to the average of 13 analysts polled by Refinitiv before it released its half-year results.<\/p>\n\n\n\n

The airline’s shares had surged 9.3% on Wednesday ahead of the earnings announcement, which was made while trading was suspended for the market’s lunch break.<\/p>\n\n\n\n

“It is laggard buying on some traditional economy stocks,” Steven Leung, a sales director at UOB Kay Hian, said of the rise.<\/p>\n\n\n\n

($1 = 7.7506 Hong Kong dollars)<\/p>\n\n\n\n

(Reporting by Jamie Freed; additional reporting by Donny Kwok in Hong Kong; Editing by Himani Sarkar)<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Hong Kong’s Cathay Pacific Airways Ltd reported a record HK$9.87 billion ($1.27 billion) first-half loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic.<\/p>\n","protected":false},"author":1,"featured_media":8476,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4510,8637,798,10174,797,4813,7890,89,799,5637,4552,6117,8222,10701,10700,5992,2203,4957,5676,10169,10617,10176,1397,10173,10195,10171,868,10182,1103],"tags":[47,464,420,625,1480,160,41,2002,4832,1327,1293,1015,4800,3740,10030,1924,741,2956,2493,12206,11086,11542,1671,482,1329,3170,3301,688,11934,11547,2858,9782,11403,2859,3759,3737,12205,412,995,1016,5970,10938,1685,7434,6783,4748,2918,7136,7597,3017,1699,1288,1978,4256,3269,4445,1756,1691,1658,4612],"class_list":["post-8474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerospace-news","category-air-cargo-news","category-airbus-news","category-airline","category-airline-news","category-airplane-news","category-asia-news","category-aviation-news","category-boeing-news","category-business-news","category-cargo-news","category-china-news","category-consumer-news","category-coronavirus","category-covid-19","category-economic-news","category-finance-news","category-global-politics","category-international-news","category-news","category-pacifica","category-stock-news-2","category-stock-news","category-stockairline","category-transport","category-transportation","category-transportation-news","category-travel","category-travel-news","tag-airbus","tag-aircraft","tag-airline","tag-airways","tag-australia","tag-aviation","tag-boeing","tag-book","tag-border","tag-capacity","tag-cargo","tag-cathay","tag-charges","tag-conditions","tag-coronavirus","tag-cost","tag-delay","tag-deliveries","tag-demand","tag-donny-kwok","tag-editing","tag-expect","tag-first","tag-flights","tag-flying","tag-freight","tag-future","tag-government","tag-half","tag-himani-sarkar","tag-hong","tag-impairment","tag-jamie-freed","tag-kong","tag-loss","tag-lower","tag-meaningful","tag-news","tag-order","tag-pacific","tag-package","tag-pandemic","tag-passenger","tag-planned","tag-plunged","tag-posts","tag-record","tag-recovery","tag-reporting","tag-rescue","tag-restrictions","tag-reuters","tag-revenue","tag-schedule","tag-storage","tag-structure","tag-sydney","tag-transport","tag-transportation","tag-yield"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8474"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8474\/revisions"}],"predecessor-version":[{"id":8477,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8474\/revisions\/8477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/media\/8476"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}