Capacity expected to reach 25pc by year end: Cathay
Cathay Pacific said on Friday it expects to operate up to about a quarter of the airline's pre-pandemic passenger flight capacity by the end of the year if the current travel and operating restrictions remain unchanged. The loss-making Hong Kong carrier said it carried about 150,000 passengers in June, nearly four times that of just over 40,000 a year ago, thanks to the easing of quarantine rules and the flight suspension mechanism by the government. Still, the figure was still down 95 percent from pre-Covid levels. Cathay carried about 104,560 tonnes of cargo last month, a decrease of 4.4 percent year on year. It expects demand will pick up later in the year. "We have enjoyed improved cash performance since the further adjustments in the travel restrictions and quarantine requirements came into effect on May 1," said Cathay's chief customer and commercial officer Ronald Lam in a statement. "We expect that the anticipated capacity increases will continue to have a positive impact on our monthly operating cash burn, such that we are targeting to be operating cash generative going forward." Cathay also said it welcomes the government's recent decision to put the flight suspension mechanism on hold. It also said it's "encouraged" that the administration is considering reducing the hotel quarantine period for inbound travellers. "We continue to actively add back flight capacity as we work to rebuild our hub and network," said Lam.