Hong Kong Cathay Pacific Reports 869 Billion KRW Loss Last Year Due to COVID-19

(Photo by EPA)

[Asia Economy Reporter Kim Hyunjung] Cathay Pacific, a Hong Kong-based airline, reported a loss of 5.5 billion Hong Kong dollars (approximately 869 billion KRW) last year due to travel restrictions caused by the spread of COVID-19, according to the Hong Kong South China Morning Post on the 9th. The loss amount significantly decreased compared to 21.6 billion Hong Kong dollars in 2020.

Patrick Healy, Chairman of Cathay Pacific, stated that the unprecedented disruption caused by the COVID-19 pandemic has seriously impacted the business.

Regarding the strengthened quarantine requirements this year, Chairman Healy explained, "If the current level of restrictions is maintained, passenger capacity will operate at about 2% of pre-pandemic levels, and cargo operations will be less than one-third." Hong Kong currently bans flights from nine countries including the United States and has suspended most transit services.

Cathay Pacific transported 717,059 passengers last year, a significant decrease from 4.6 million in 2020. This is even lower compared to two years before the pandemic (2019, 35.2 million). Reducing cargo capacity to about 20% of pre-pandemic levels also had a major impact on performance.

As part of restructuring in October 2020, the company cut 5,900 jobs, reduced employee salaries, and ceased operations of its subsidiary Cathay Dragon.

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