The effects of the Sars outbreak are expected to drag Cathay Pacific Airways deep into the red in its first-half results, but analysts are forecasting a rebound in the rest of the year.
The No1 carrier in Hong Kong is expected to report a net loss of $1.44 billion when its interim results are released today, according to a survey of six research houses.
It made a $1.41 billion net profit in the first half last year.
'Cathay started the year well with a record January, but we estimate that Sars and the Iraq war-induced losses of April wiped out the first-quarter profits,'' Credit Suisse First Boston analyst Peter Hilton said in a report.
It estimated an interim loss of $1.2 billion.
Passenger numbers fell more than 32 per cent to 4.01 million in the first half due to the Sars outbreak. But traffic has improved gradually, with passenger numbers in June surging more than 88 per cent from May, when the outbreak was at its peak. Cathay will reinstate its full schedule next month.
