Cathay Pacific Reports 2020 Net Loss of $2.8 Billion on 56 Percent Revenue Decline to $6.0 Billion
Cathay Pacific Group has reported a 2020 net loss of HK $21,648 million (US $2.8 billion) or HK 424.3 cents (US $0.55) on a year-over-year revenue decline of 56 percent to $6.0 billion.
On Wednesday (March 10, 2021), Cathay Pacific Group reported a 2020 net loss of HK $21,648 million (US $2.8 billion) or HK 424.3 cents ($0.55) on a year-over-year revenue decline of 56 percent to $6.0 billion. The 2020 loss is net of HK $2,689 million (US $347 million) received from COVID-19-related government grants and includes an impairment charge on 34 aircraft of HK $4,056 million (US $523 million), as well as restructuring costs of HK $3,973 million (US $512 million). In June 2020, Cathay Pacific announced a HK $39.0 billion (US $5.0 billion) recapitalization which was supported by the Hong Kong SAR Government and company shareholders.
In October 2020, Cathay Pacific announced 8,500 redundancies and the discontinuation Cathay Dragon by the end of 2020. The carrier also Hong Kong-based pilots and cabin crew members to transition to more competitive conditions of service, with 98.5 percent of pilots and 91.6 percent of cabin crew accepting the new contracts. Cathay Pacific’s restructuring costs totaled approximately HK $2.4 billion (US $309.4 million) and resulted in a monthly savings of about HK $500 million (US $64.5 million) monthly. The carrier has reduced their monthly cash burn from HK $ 1.5-2.0 billion to HK $ 1.0-1.5 billion.
Cathay Pacific’s cargo revenue for 2020 increased year-over-year by 16.2 percent to HK $24,573 million (US $3.2 billion), while revenue freight ton kilometer (RFTK) traffic increased 26.5 percent on an available freight tonne kilometer (AFTK) capacity decrease of 35.5 percent.
During the year, the carrier transferred 82 passenger aircraft, or approximately 46 percent of their fleet from Hong King International Airport to Alice Springs, Australia and Ciudad Real in Spain, where environmental conditions are ideal for storage. Cathay Pacific also reached an agreement with Airbus to defer delivery of A350-900/1000s from 2020-21 to 2020-23 and the delivery of A321neos from 2020-23 to 2020-25. The company continues to negotiate with Boeing for the deferral of ordered 777-9s.
Source: Cathay Pacific