Cathay Pacific Airways Ltd posted a first-half loss of HK $5 billion $637 million, a first-half loss from the previous year's HK $7.57 billion, as easing quarantine rules boosted passenger numbers.
The airline had said in June that it expected a lower first-half loss than the previous year, but warned the figure would still be substantial First-half revenue rose by 17% to HK $18.6 billion, despite passenger numbers falling 95.2% below pre-pandemic levels in June.
Hong Kong is one of the few places in the world, along with mainland China and Taiwan, to still require COVID- 19 quarantine for arrivals, though such hotel stays are to be cut to three days from seven, officials in the financial hub said this week.
Cathay said it expected passenger capacity to reach 25% of pre-pandemic levels by the end of the year, up from 11% in June, and was now targeting a positive cash flow position.
The ability to add flights is slowed by rules for air crews on passenger jets to spend three days in quarantine in hotels upon returning home.
Chairman Patrick Healy said that we will only be able to operate more flight capacity when the existing stringent travel restrictions and quarantine requirements for Hong Kong-based aircrew are lifted.
As restrictions come to an end, the airline is preparing to bring back more planes from storage to restore Hong Kong's status as an air transport hub.
Cathay expects financial results to improve in the second half from the first. The average of 11 analyst estimates was compiled by Refinitiv, and the airline is expected to report a full-year loss of HK $4.5 billion.