Hong Kong’s Cathay Pacific says rising demand to improve financial situation, but warns of ‘substantial’ annual loss
- ‘It is now our expectation that the second half of 2022 will be operating cash generative overall,’ Ronald Lam says
- Travel demand remains promising for Christmas holiday period, Lam adds
Hong Kong’s Cathay Pacific Airways has said rising demand for travel is expected to improve its operating cash flow in the second half of 2022, despite a prediction of a “substantial” annual loss for the financial year.
Ronald Lam Siu-por, Cathay’s chief customer and commercial officer, on Friday said demand had improved following Hong Kong’s easing of travel restrictions for inbound arrivals and airline crew in September.
“As such, it is now our expectation that the second half of 2022 will be operating cash generative overall,” Lam, who will take on the role of the airline’s next CEO from January, said.
Lam said he expected results for the second half of the year to improve, but added there would still be a “substantial loss” overall in the 2022-23 financial year.
The results for the second half of 2022 from the carrier’s associates, most which are recognised three months in arrears, will include significant losses, he added.
The city eased its travel curbs to a “0+3” scheme in September, where inbound travellers were no longer required to quarantine in a hotel, but underwent a three-day medical surveillance period, with limited citywide movement.
Lam said demand for travel for the rest of the year had continued to improve and remained promising for the Christmas holiday period.
