Cathay Pacific has reported an annual loss of $834.42 million for 2022, wider than previous year’s loss of HK$5.53bn. The airline released its financial statement for 2022 reporting a positive outlook for 2023 with the lifting of quarantine restrictions and opening of the China border. The Group reported marked improvement over the second half of 2022, reporting a profit of HK$2,261.
"We were very encouraged to see a bright light at the end of the tunnel in the second half of 2022, and the positive momentum has continued into 2023," CEO Ronald Lam said in a statement. "After three brutal years of the COVID-19 pandemic, we have finally entered into a new exciting phase in which we will rebuild Cathay Pacific for Hong Kong," Lam added.
The Group reported unrestricted liquidity at HK$27.2 billion as of December 31, 2022 due to extension provided by the Hong Kong SAR Government on the HK$7.8 billion bridge loan facility for a further 12 months to June 8, 2023.
During the initial COVID-19 phase, the airline’s travel and cargo operations were constrained till May 2022 when the Hong Kong SAR Government began introducing progressive adjustments, thus enabling the Group to resume more flights between October 2022 to December 2022.
On the travel side, Cathay Pacific and HK Express added 3,000 passenger flights during the fourth quarter of 2022. By December 2022, the Group was operating about one-third of pre-pandemic passenger flight capacity, representing approximately eight times the average capacity the airlines together operated in the first half of the year. Cathay Pacific ended the year operating passenger flights to 58 destinations; double the 29 destinations the airline flew to in January 2022.
On the cargo side, the Group resumed operating a full freighter schedule in August 2022.
In 2022, Cathay Pacific’s passenger revenue increased by 214.9% to HK$13,686 million compared with 2021. Passenger flight capacity, measured in available seat kilometres (ASKs) increased by 51.6%, while traffic, measured in revenue passenger kilometres (RPKs) increased by 258.3%. The Group carried a total of 2.8 million passengers in 2022, an average of 7,682 per day, which was 291.1% more than in 2021. Load factor was 73.6% compared with 31.1% in 2021.
Meanwhile, cargo revenue in 2022 decreased by 16.6% to HK$26,990 million compared with 2021.
“As we put the past few challenging years behind us and move into a new phase, our focus is now firmly on rebuilding Cathay Pacific for Hong Kong. We are reconnecting Cathay Pacific with Hong Kong, as well as reconnecting Hong Kong with the world,” Lam further added.
HK Express reported a loss of HK$1,359 million for 2022, while the loss reported in 2021 stood at HK$1,978 million.
The airline’s results were adversely affected by the stringent travel restrictions and quarantine requirements, but benefitted from adjustments to these restrictions from 1st May onwards, particularly in the last quarter.
Air Hong Kong reported a profit of HK$776 million for 2022 while the profit in 2021 stood at HK$748 million.
Cathay Pacific Group also took delivery of five new, modern aircraft and reactivated 24 of the aircraft that were parked oversees.