Cathay Pacific posts a surprise $344 million profitBack to Forum
A good result for Cathay amid the airline industry gloom.11 Mar 2020
Profits last year were down 28%, however they were still better than expected bearing in mind the protest disruptions in HK.
This year will be a different story, they are expecting big losses with 150 planes parked up (so still a cost but not earning income) and capacity cut by 65% over next 2 months.11 Mar 2020
But “substantial loss” forecast in first half 2020.11 Mar 2020
It will be interesting indeed to see which of the airlines as adversely affected as is Cathay manages a decent result in the next half and beyond.
There would be at least a couple of carriers at least that I predict will not be around in their present form or at all this time next year.12 Mar 2020
In one month (February) alone CX recorded a loss of HK$2 billion or US$257 million.
Passenger traffic in February declined by two-thirds.
1 user thanked author for this post.16 Mar 2020
Its Looking like CX is at least one airline airline early into survival mode.
‘Cathay Pacific also said on Monday it struck a deal with aircraft lessor BOC Aviation to sell and lease back six Boeing 777-300ER planes in a deal worth US$703.8 million to shore up its battered balance sheet.
Last week the airline said it had immediate access to $20 billion of unrestricted liquidity’.
Air freight demand remained high and is rapidly increasing with China factories coming back on-line and the cargo business indeed looks to be doing very well from the crises with capacity stretched to a point where CX has dry leased extra aircraft and added extra flight crew.
Cathay together with its subsidiary Air Hong Kong has close to 40 large freighters and is the world’s largest (non freight airline) carrier air of freight.
It is also reported that air freight rates have risen sharply in the past few days
It’s looking like for at least in the mid term large freight capacity is a very good resource to have on hand.17 Mar 2020