Cathay Pacific has reported a record annual loss of £2 billion for 2020. The Hong Kong flag-carrier said the poor results were due to a sharp downturn in travel during the Covid-19 pandemic.
The carrier said the decision was in view of the entry restrictions put in place by the government of Hong Kong on arrivals from the UK.
Cathay Pacific is seeking to help customers travel with confidence by collaborating with AXA General Insurance Hong Kong to provide free Covid-19 coverage to all passengers whenever they fly.
Cathay Pacific has confirmed regional subsidiary Cathay Dragon will cease operations after three decades as part of a wider restructuring of the company in the face of the Covid-19 pandemic.
Cathay Pacific has reported a loss of £1 billion for the first half of the financial year as the Covid-19 crisis continues to decimate demand for global air travel.
Cathay Pacific has said it expects to report a loss of HK$9.9 billion (£1 billion) for the six months ended June 30th. The figure compares to a net profit of HK$1.3 billion for the same period in 2019.
Cathay Pacific has launched Cathay Care, a new protocol that incorporates cleaning, protection and hygiene measures to ensure the safety of both employees and passengers, from check-in to landing.
This three-part plan, financed by the government of Hong Kong, is designed to provide Cathay with sufficient funds to withstand the industry-wide downturn, as well as a stable platform from which it will be able to conduct a wholesale review of operations.
Cathay Pacific and Cathay Dragon will reduce capacity by 96 per cent across passenger networks in April and May in light of the severe drop in demand due to the coronavirus pandemic.
The Hong Kong-based carrier, which has been among the airlines hardest hit by the virus, said it has reduced capacity across its network by 65 per cent in March and April.
Cathay Pacific has asked staff to take three weeks of unpaid leave to help it cope with the impact of the coronavirus. The Hong Kong flag-carrier has offered a voluntary special leave scheme to all employees.