Cathay Pacific Reports FY 2021 Net Loss of HK$ 5.5 Billion on 2.9% Decline in Revenue to HK$ 45.6 B
Cathay Pacific has reported a full year 2021 net loss of HK$ 5.53 billion or (HK$ 0.951) per share on a year-over-year decline in revenue of 2.9 percent to HK$ 45.6 billion. The result is a substantial improvement compared to a loss of HK$ 21.6 billion for FY 2020.
On Wednesday (March 9, 2022), Cathay Pacific Airways Limited reported their financial results for the full year ending December 31, 2021. The Group reported a net loss of HK$ 5.53 billion or (HK$ 0.951) on a year-over-year decline in revenue of 2.9 percent to HK$ 45.6 billion. This compares to a FY 2020 net loss of HK$ 21.6 billion or (HK$ 4.243) per share. At December 31, 2021, the Cathay Pacific Group had unrestricted liquidity of HK$ 30.25 billion, an increase of 5.8 percent versus year end 2020.
In today’s financial report, Cathay Pacific’s Chairman, Patrick Healy, said in part,
“In our previous annual report, I wrote that 2020 was the most challenging year in our history. The unprecedented disruption caused by COVID-19 to the global aviation industry and the subsequent travel and operational restrictions around the world have continued to affect our business severely. Notwithstanding these challenges, the situation did improve as 2021 progressed.
“The second half of the year is traditionally stronger than the first half, and this was the case for us in 2021. The exceptional performance of our cargo business, especially during the second-half peak season, was extremely encouraging. Nevertheless, we continued to face serious challenges and despite the considerable improvement in results in the second half of the year, our overall loss for the full year was still substantial.
“The Cathay Pacific Group’s attributable loss was HK$5,527 million in 2021 (2020: loss of HK$21,648 million). The loss per ordinary share in 2021 was HK95.1 cents (2020: loss per ordinary share of HK424.3 cents). The Group’s attributable profit was HK$2,038 million in the second half of 2021 (2021 first half: loss of HK$7,565 million; 2020 second half: loss of HK$11,783 million). Cathay Pacific reported an attributable profit of HK$3,303 million in the second half of 2021 (2021 first half: loss of HK$5,031 million; 2020 second half: loss of HK$10,032 million).
“The loss for 2021 includes impairment and related charges of HK$832 million, mainly relating to 12 aircraft that are unlikely to re-enter meaningful economic service before they retire or are returned to lessors, HK$385 million in restructuring costs and a HK$210 million gain on the dilution of an associate interest in Air China Cargo. This compares to impairment and related charges of HK$4,056 million in 2020 relating to 34 aircraft (and to certain airline service subsidiaries’ assets) and HK$2,383 million of restructuring costs. Adjusting for these exceptional items, the Cathay Pacific Group’s attributable loss for 2021 was HK$4,520 million (2020: loss of HK$15,209 million), and Cathay Pacific’s loss for 2021 was HK$776 million (2020: loss of HK$12,195 million).
“Cathay Pacific celebrated an important milestone in our history in 2021 as we marked 75 years of bringing people together as Hong Kong’s home airline. Though we have certainly experienced our share of challenges over the years, COVID-19 key among them, we have also had incredible successes. Throughout our history, we have connected people to new destinations, welcomed the arrival of state-of-the-art aircraft and launched exciting innovations. As our home city has grown, so have we, and we are immensely proud to have represented Hong Kong over the past 75 years and to have helped it grow into one of the leading international aviation hubs in the world…”
During 2021, the Group launched “Cathay”, a new premium travel lifestyle brand. In August 2021, the carrier also celebrated the inaugural flight of their first Airbus A321neo, of which five have since been delivered, and a total of 16 are expected to enter Cathay Pacific’s fleet by 2023. The airline’s cargo business reported FY 2021 revenue of HK$ 32.4 billion, a year-over year increase of 31.8 percent. HK Express reported a FY 2021 loss of HK$ 1.98 billion compared to a full year 2020 loss of HK$ 1.72 billion, attributable to low demand related to COVID-19 travel restrictions and quarantine requirements.
Source: Cathay Pacific