Cathay Pacific Airways warns of harsh outlook as Hong Kong’s flag carrier confirms record HK$9.9 billion loss in first half of 2020 caused by coronavirus crisis

Hong Kong’s flag carrier has suffered a collapse in passenger demand during the global health crisis to post a HK$9.9 billion loss

Cargo business generated more revenue than passenger operations, according to the financial results covering first six months of the year

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Cathay Pacific has confirmed its financial results for the first six months of 2020. Photo: Sam Tsang

Published: 12:33pm, 12 Aug 2020Updated: 11:39pm, 12 Aug 2020

Cathay Pacific Airways has warned worsening economic and geopolitical conditions will continue to weaken passenger demand and harm its cargo business after confirming its largest ever half-year loss of HK$9.9 billion (US$1.3 billion), caused by the Covid-19 pandemic.

Hong Kong’s flag carrier on Wednesday said a looming global recession and intensifying diplomatic tensions would lead to a “negative impact” on its operations.

Bosses described the first six months of 2020 as the most challenging in Cathay’s 73-year history. The outlook appeared to show little improvement, chairman Patrick Healy warned.

“The short-term future is going to be tough [and] extremely challenging. It is very difficult to say with certainty but I don’t think we are expecting the second half to be better than the first half at this point in time,” he said at a press conference.

The impact of Covid-19 on Cathay’s business and the global economy was “unprecedented”, the company said earlier in the day.

Previously the company reported a HK$1.34 billion net profit for the same period last year.