Cathay is reaffirming its commitment to reaching net-zero carbon emissions by 2050 by pledging to use sustainable aviation fuel for ten per cent of its total fuel consumption by 2030.

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 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 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.

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.

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.