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Tuesday, February 27, 2024

Hong Kong’s Cathay Pacific posts $834 million loss for 2022

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HONG KONG — Cathay Pacific Airways Ltd. stated it was able to rebuild as Hong Kong opened as much as world guests regardless of reporting wider losses in 2022.

The airline reported an annual lack of 6.55 billion Hong Kong {dollars} ($834.4 million) for the 12 months ending Dec. 31 — an 18.5% improve in losses from 2021 amid strict entry restrictions into town throughout the first half of 2022.

Nevertheless, Cathay noticed income develop 12% to 51 billion Hong Kong {dollars} ($6.5 billion), and likewise posted an working revenue of three.55 billion Hong Kong {dollars} ($452 million) for the primary time since 2019, as quarantine necessities in Hong Kong have been relaxed within the second half of 2022.

“2022 was one other difficult 12 months for the Cathay Pacific Group as a result of journey restrictions introduced by the COVID-19 pandemic,” Cathay CEO Ronald Lam stated in a press release. “Nevertheless, we have been very inspired to see a vivid mild on the finish of the tunnel within the second half of 2022, and the Positive momentum has continued into 2023.”

Cathay attributed the numerous loss in 2022 to outcomes from its associates, together with Air China, that “mirrored the persevering with impression of the COVID disaster on our Chinese language mainland investments,” Cathay Chair Patrick Healy informed a information convention Wednesday.

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In 2022, Cathay held about an 18% stake in state-owned Chinese language provider Air China, which stated earlier this 12 months that it anticipated losses of as much as 39.5 billion yuan ($5.7 billion) — greater than double its losses within the 12 months earlier than.

Cathay stated it could be working at about 70% of pre-pandemic passenger flight capability by the top of 2023, and goals to return to pre-pandemic ranges by the top of 2024.

Cathay has been slower to recuperate than regional rivals equivalent to Singapore Airways after Hong Kong aligned with mainland China’s restrictions and stance on COVID-19. The town was among the many final locations on this planet to ease masking necessities in March, and for many of 2022 had required incoming vacationers to serve a compulsory quarantine.

Lam, nevertheless, stated the airline had recovered sooner than others with a capability climb from a single-digit share to a rebound of 70% on the finish of 2022.

“If you happen to evaluate that tempo with any airlines or any metropolis on this planet, in reality we aren’t falling behind. We’re sooner than many components of the airways, simply that our start line was completely different,” he stated.

The airline can be scuffling with a scarcity of crew members in addition to dissatisfaction by many flight attendants over pay cuts and fewer relaxation time. In a press release, the corporate stated that it acknowledged difficulties in crew rosters, resourcing, schedules and buyer help hotlines and stated it could do its “utmost to reduce such points as we proceed to rebuild.”

“We’re centered on reconnecting, and this implies reconnecting Cathay Pacific with Hong Kong, the Higher Bay Space, and the Chinese language mainland in addition to reconnecting our residence metropolis to the world,” Healy stated.



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