Cathay Pacific forecasts reduced monthly cash cremation in second half by Reuters

© Reuters. PHOTO FILE: Cathay Pacific aircraft and their regional brand Cathay Dragon are parked on asphalt at Hong Kong International Airport, Hong Kong, China on October 24, 2020. REUTERS / Tyrone Siu

From Jamie Freed

(Reuters) – Hong Kong’s Cathay Pacific Airways (OTC 🙂 Ltd plans to reduce its cash cremation to less than $ 1 billion ($ 128.84 million) a month in the second half of the year. said his chief financial officer.

The airline had burned up to $ 1.9 billion in liquidity per month in the first half due to equipment quarantine restrictions, but this will fall in the second half as rules will be relaxed for vaccinated equipment and capacity will increase, CFO Rebecca Sharpe said in an analyst briefing on Friday.

A webcast of the invitation-only information was made public Saturday night.

Cathay operates only 8% of its regular passenger capacity at a time when the number of passengers is falling by more than 99% due to restrictions at international borders.

“There has been a significant change in recent months in the dramatic impact COVID-19 has had on passengers in Hong Kong,” Sharpe said.

In August, it hopes to increase capacity to 20% of pre-COVID levels while Chinese students return to the US and UK for studies and that could rise to 30% in the fourth quarter as travel restrictions in Singapore and mainland China, Cathay Head of Customer and Sales Office Ronald Lam said.

Cathay this month said losses in the first half are expected to be “slightly” lower than last year, due to cost-saving measures and strong demand for cargo flights.

The monthly cash flow figure in Cathay is slightly higher at the S $ 100 million ($ 74.51 million) to S $ 150 million continuous level reported by rival Singapore Airlines (OTC 🙂 Ltd last month.

Both airlines lack national markets and have depended on cargo traffic for most of their revenues since the pandemic began.

Cathay said 89 of the 239 planes in his fleet were in long-term storage in Australia and Spain. Sharpe said the airline has a liquidity of 32.8 billion Korean dollars and will consider raising more funds when it can be done at a reasonable cost.

($ 1 = $ 7.7615 Hong Kong dollars)

($ 1 = $ 1.3421 Singapore)

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