Cathay Pacific forecasts narrower loss in first half By Reuters

© Reuters. FILE PHOTO: A sign of Cathay Pacific is seen at its headquarters Cathay City in Hong Kong, China October 21, 2020. REUTERS/Lam Yik/File Photo

(Reuters) -Hong Kong’s Cathay Pacific Airways (OTC:) Ltd expects a lower first-half loss than last year, driven by strong cargo performance and cost-cutting, the airline said on Tuesday, but warned that this year’s loss would still be “substantial”.

Last year’s first-half loss was HK$7.57 billion ($964.34 million).

The airline said it had added capacity in the second quarter after Hong Kong eased some crew quarantine requirements but its May capacity figures had still amounted to just about 4% of the passengers and 34% of the cargo it carried before the pandemic.

“As travel demand continues to improve over the coming months, we will increase passenger flight capacity as much as is practicable under the confines of ongoing restrictions,” Ronald Lam, its chief customer and commercial officer, said in a statement.

Hong Kong, like mainland China, is one of only a few places in the world that still requires hotel quarantine for arriving passengers in its fight to hold down COVID-19 infections. In May, Cathay’s passenger numbers were 98% below 2019 levels.

Cathay said the outlook for its cargo business is positive in the short term due to supply chain disruptions in China’s commercial hub of Shanghai and elsewhere globally.

($1=7.8499 Hong Kong dollars)