Hong Kong’s Cathay Pacific records HK$2 billion loss in February as pandemic limits travel

Breakdown of operations for last month shows Hong Kong airline flying planes half-empty on average

Management warns of skeleton flight schedule for April, although cargo business remains strong

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Cathay Pacific said it carried 1 million passengers in February, down by two-thirds from a year earlier. Photo: AFP

Published: 12:33am, 17 Mar 2020Updated: 5:31am, 17 Mar 2020

Cathay Pacific recorded an unaudited loss of HK$2 billion (US$257 million) in February due to the global slowdown in travel and curbs on flying caused by the Covid-19 pandemic, Hong Kong’s flagship airline said on Monday, warning of 90 per cent cut to its flight schedules in April and May.

The loss came from Cathay Pacific and Cathay Dragon, which suggests the actual blow to the company could be more severe once the business downturn of its budget carrier HK Express is factored in. In normal times, the company’s associate and subsidiaries account for most of the group’s profits in contrast to the airline business as a stand-alone operation.

Cathay Pacific last week unveiled a surprise HK$344 million profit for the second half of last year but expected a “substantial” loss for the first half of 2020. Overall profits for 2019 fell 28 per cent to HK$1.7 billion on revenue of HK$107 billion, a slide that came as visitors shunned Hong Kong as it was convulsed by anti-government protests that erupted in June.

“We are facing an unprecedented challenge as the COVID-19 pandemic continues to cause widespread disruption to our operation and business,” said Ronald Lam Siu-por, the airline’s chief customer and commercial officer.

The Cathay group has been carrying about 20,000 passengers a day so far this month, down roughly 80 per cent from its usual number, with as many as 150 planes sitting idle on the tarmac.

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