Cathay Pacific is a Cash Burning Inferno

Posted by Ed 2 yrs ago
Cathay Pacific is poised to lose nearly $200 million a month from February, the embattled Hong Kong carrier reported Monday, as the city's Covid-19 restrictions have seen cargo flights slashed.

Hong Kong has maintained some of the world's harshest travel restrictions, isolating a city that was once one of the world's largest logistics and transportation hubs.

Air crew quarantine measures were further tightened following the discovery that two Covid-positive Cathay staff had breached home quarantine -- which resulted in the city's first outbreak of the hyper-contagious Omicron variant.
By January, Cathay's cargo flights -- one of the few sectors where the airline was making cash -- had reduced to 20 percent of its pre-pandemic capacity, while passenger flights dropped to two percent, its CEO Augustus Tang said Monday.
"According to our preliminary assessment, we expect these capacity levels to result in an operating cash burn of HK$1.0-1.5 billion ($128 - $193 million) per month from February." 

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