Coronavirus: Cathay warns its losses in second half of 2020 will outstrip even its record shortfall in first half

The figures put the airline on track to more than double its previous record for losses in a single year, which came in 2008 at the height of the global financial crisis

Cathay lost HK$9.87 billion in the first six months of the year alone

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Cathay Pacific is predicting massive losses in the second half of 2020. Photo: Felix Wong

Published: 6:07pm, 16 Dec 2020Updated: 10:44pm, 16 Dec 2020

Cathay Pacific on Wednesday warned it will lose even more money in the second half of 2020 than its record first-half loss of HK$9.87 billion (US$1.27 billion) as it continues to reel from the toll of Covid-19 on its business.

Hong Kong’s struggling flag carrier said it expected losses between July and December this year to be “significantly” higher than those from January to June, signalling that it would more than double its previous record annual loss of HK$8.56 billion, which came in 2008, at the height of the global financial crisis.

The airline has continued to suffer under the pandemic, operating a skeletal flight schedule reflective of severely depressed demand amid ongoing border closures and travel restrictions around the world.

“This, together with the additional restructuring and impairment costs announced in October, and further aircraft impairment at year-end, is expected to result in the second-half losses being significantly higher than the first-half losses reported in our interim accounts,” Cathay executive director Ronald Lam Siu-por said.

The airline has been battered by severely depressed demand amid the coronavirus pandemic. Photo: Winson Wong

Cathay lost HK$9.87 billion between January and June this year, which included a HK$2.47 billion impairment on 16 aircraft unlikely to be flying again before they are retired. The airline said such write-offs were likely to increase at the year’s end.