Cathay Pacific Reports Worst Record Loss
In March 2021, Cathay Pacific posted its worst-ever financial results. They Report that they lost about 21.6 Billion Hong Kong Dollars In 2020 due to the pandemic.
The figures released by the airline were not expected by analysts.
What Happened Exactly to Cathay Pacific?
As we all know, the aviation industry has been crippled due to the COVID-19 pandemic. For Cathay, The more people that did not fly, the more they slashed the number of passenger flights.
Their Daily passengers dropped by
from their pre-pandemic average of 100,000 people.
Many of their aircraft have been grounded or sent away for storage. Their freight subsidiary saved the airline from recording even deeper losses and going bankrupt in 2020.
To survive from bankruptcy, they got a 5 Billion dollar bailout from the government and share holders in June 2020.
The pandemic also forced them to slash 6,000 jobs and to close it’s regional airline, Cathay Dragon.
Cathay Pacific also says that the following months will be very challenging.
Their recovery is linked to the roll-out of its vaccinations as well. Officials hope that vaccinations will be adopted in ‘key markets’ by July or August.
Do you think that Cathay would survive in 2021?