Cathay Pacific reports £2bn loss for the year
Cathay Pacific Airways has reported a record annual loss of $2.8 billion (£2 billion) for financial 2020.
The Hong Kong flag-carrier said the poor results were due to a sharp downturn in travel during the Covid-19 pandemic.
Major restructuring costs and pollical disruption in the city have also taken a toll on the airline.
Cathay had previously warned it expected its second-half losses to be worse than the record first-half loss of $1.3 billion.
The annual loss compares to a profit of $220 million in 2019.
Cargo was the best performer for the airline, though it too saw a downturn, because the reduction in passenger flights, which also carry cargo, caused a reduction in capacity.
“Our short-term outlook continues to be challenging.
“However, we remain absolutely confident in the long-term future and competitive position of our airlines,” Cathay chairman, Patrick Healy, said.
In October, Cathay Pacific announced it would close its subsidiary Cathay Dragon, a regional carrier flying mainly to mainland China and other Asian destinations.
The beleaguered carrier also announced it would cut an additional 8,500 jobs, amounting to about a quarter of its staff.
The cost-cutting move came after the airline received a $5 billion bailout from the Hong Kong government in June.
Hong Kong Tourism Board yesterday unveiled a £127 million plan to restart the hospitality sector in the city.