Cathay Pacific Reports H1 2022 Loss of $637 million or $0.10 per share
Cathay Pacific has reported a first half 2022 loss of HK$ 4.999 billion (US $637 million) or HK 0.823 cents (US $0.10) per share on a year-over-year increase in revenue of 17.0 percent to HK $18.55 billion (US $2.36 billion).
On Wednesday (August 10, 2022), Cathay Pacific Group announced their first half (H1) interim financial results for the six month period ending June 30, 2022. The carrier reported a H1 loss of HK$ 4.999 billion (US $637 million) or HK$ 0.823 cents (US $0.10) per share. Cathay Pacific’s revenue increased 17.0 percent compared to H1 2021 to HK$ 18.55 billion (US $2.36 billion). The airline’s first half 2022 results were impacted by the spread of the COVID-19 Omicron variant and the subsequent travel and operational restrictions, particularly between Hong Kong and Mainland China. At June 30, 2022, Cathay Pacific Group had unrestricted liquidity of HK$ 26.7 billion (US $3.4 billion).
In Wednesday’s announcement, Cathay Pacific Group’s Chairman, Patrick Healy, said in part,
“The Cathay Pacific Group had an extremely difficult start to 2022. For more than two years, COVID-19 has had an unprecedented impact on global aviation with the situation often fluctuating between periods of relative improvement and significant setbacks as new variants of the virus have emerged. The first half of 2022 bore similarities to the first half of 2021. The spread of a new COVID-19 variant, Omicron, led to increasingly stringent travel and operational restrictions, most notably in Hong Kong and the Chinese Mainland, which severely constrained our ability to operate flights and greatly affected the demand for travel.
“Early in January, Hong Kong saw the introduction of a number of measures intended to combat the virus, including a ban on flights to Hong Kong from nine countries, among them key markets such as the UK and the US, and a ban on transit and transfer services via Hong Kong International Airport. Quarantine rules for Hong Kong-based aircrew as well as the route-specific flight-suspension mechanism were also further tightened.
“These restrictions resulted in a particularly unfavourable first few months of 2022 and we significantly reduced our passenger and cargo flight capacities. As our home city endured an especially difficult phase of the pandemic, we supported the safe movement of people and essential goods between Hong Kong and the rest of the world and preserved the fundamental integrity of our passenger and cargo networks.
“The challenges posed by COVID-19, and the restrictions in place to combat it, placed a considerable burden on many of our employees, most notably our aircrew, thousands of whom spent countless nights in quarantine hotels. I wish to extend our sincere appreciation to all our people for the selfless endeavour and extraordinary professionalism they displayed throughout this very difficult time.
“The progressive adjustments to these restrictions from 1st May were positive developments. Adjustments to the testing and quarantine requirements for Hong Kong-based aircrew enabled us to progressively resume flights to more destinations in May and June. This included the resumption of daily London passenger flights, and a full freighter schedule.
“The loss attributable to the Cathay Pacific Group, which includes Cathay Pacific, its subsidiaries and its associates, was HK$4,999 million in the first half of 2022 (2021 first half: loss of HK$7,565 million). Cathay Pacific’s loss after tax was HK$1,501 million in the first half of 2022 (2021 first half: loss of HK$5,031 million). The share of losses from subsidiaries was HK$1,015 million (2021 first half: loss of HK$1,224 million), and the share of losses from associates was HK$2,483 million (2021 first half: loss of HK$1,310 million)…”
For H1 2022, HK Express reported a loss of HK$ 824 million (US $105 million) compared to a loss during the same period last year of HK$ 976 million (US $ 124.4 million). During the first half of 2022, Air Hing Kong reported a profit of HK$ 383 million (US $48.8 million), versus a H1 2021 profit of HK$ 374 million (US $47.7 million). Cathay Pacific hopes to increase their passenger and cargo flight capacity to 65 percent of pre-pandemic levels by the end of 2022. Over the next 18-24 months, the Group plans on hiring over 4,000 nee front-line team members to support the ramp-up of operations.
Source: Cathay Pacific