Cathay Pacific readies to take off with Cathay brand despite turbulent HK$7.6 bn loss

Cathay Pacific has lost about HK$7.56 billion in H1 2021 as its business was still severely impacted by the pandemic and virus variants, but it will continue the development of Cathay as a premium travel lifestyle brand in the future.

In a statement, Cathay Pacific said its attributable loss was HK$7.565 billion in H12021 while in H1 2020, the loss was HK$9.865 billion. 

Chairman Patrick Healy said passenger revenue was severely affected by COVID-19-related travel restrictions and quarantine requirements. It decreased by 92.8% to HK$745 million in H1 2021 compared with the first half of 2020. Revenue passenger kilometres (RPK) decreased by 95.8% while passenger capacity decreased by 85%. He added that demand from passengers was still weak. Cathay Pacific only carried 157,000 passengers in the first half, an average of 868 passengers per day, 96.4% fewer than in the same period in 2020.

Meanwhile, Cathay Pacific's sister airline HK Express reported a loss of HK$976 million for H1 2021 (H1 2020: HK$779 million). The results were adversely affected by low demand for passenger travel and COVID-19-related travel restrictions and quarantine requirements, including those affecting Hong Kong-based aircrew.

Looking ahead, Cathay Pacific is hoping to operate up to 30% of its pre-pandemic passenger capacity by Q4 2021, but this is dependent on operational and passenger travel restrictions being lifted.

In a media webcast, Healy unveiled the company's post-pandemic recovery strategy. "Our dual-brand approach, benefitting from the premium service of Cathay Pacific alongside the unique strengths and growth potential of our low-cost carrier HK Express, will position us well to take immediate advantage of the market recovery as it happens," he said.

He added that Cathay Pacific will continue to pursue the development of Cathay as a premium travel lifestyle brand, offering a new range of offers in dining, shopping, hotels, and wellness. Cathay brings together Cathay Pacific, Marco Polo Club and Asia Miles all in one place, simplifying the way the brand’s customers interact with it, including how they earn status and use miles.

Initially, Cathay will only be available in Hong Kong while Cathay Pacific will continue to be the brand known to the rest of the world. Over time, the Cathay premium travel lifestyle brand will be extended to other markets. "We are working hard to improve our digital offerings, and we are positioning ourselves to capitalise on the opportunities provided by the Greater Bay Area as our extended home market," said Healy.

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