Cathay Pacific Group recorded a HK$9,865 million ($1.27 billion) H1 loss. Cathay Pacific and Cathay Dragon reported a loss after tax of HK$7,361 million in the first half of 2020, and the share of losses from subsidiaries and associates was HK$2,504 million.
Passenger revenue decreased by 72.2% to HK$10,396 million in the first half of 2020. RPK traffic decreased by 72.6%. The carrier said that this loss of revenue reflects the precipitous drop in passenger demand resulting from the extensive travel restrictions, border controls and quarantine arrangements which were implemented around the world in response to the COVID-19 pandemic.
In total, Cathay carried 4.4 million passengers, 76.0% fewer than in 2019. The load factor also dropped significantly, to 67.3% from 84.2% in the first half of 2019. In April and May we were carrying an average of only around 500 passengers a day.
Cathay confirmed in its results that the airline has reached agreement with Airbus to defer delivery of its ordered A350-900’s and A350-1000’s from 2020 and 2021 to 2020- 2023, and its outstanding A321neo’s from 2020-2023 to 2020-2025. The airline is also in advanced negotiations with Boeing for the deferral of B777-9 deliveries.
“This deferral of deliveries is expected to produce cash savings to the Cathay Pacific Group in the short to medium term,” the company said in its results statement.
In June 2020 Cathay Pacific announced a HK$39 billion recapitalisation plan made up of a HK$19.5 billion preference share issue (with attached warrants), a HK$11.7 billion rights issue and a HK$7.8 billion bridging loan facility. This recapitalisation was completed on August 12.