The Hong Kong based Cathay Pacific suffered a loss of HK$9,865 million in the first half of 2020 the airline reported on Wednesday.
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Photo Cathay Pacific |
The carrier had a promising start to 2020, with encouraging signs that passenger demand was beginning to return
following the social unrest which saw mass riots and protests calling for democracy, which impacted the second half of 2019. However, the first six months of 2020 were the most
challenging that the airline has faced in its more than 70-year history. The impact of COVID19 on the Group’s business and the global economy is unprecedented.
In response, Cathay Pacific announced a HK$39 billion
recapitalisation in June, which comprised of a HK$19.5 billion preference share issue, a HK$11.7
billion rights issue and a HK$7.8 billion bridging loan facility. This recapitalisation was completed on 12 August
2020.
The Cathay Pacific Group’s attributable loss was HK$9,865 million in the first half of 2020 (last year the carrier had a profit
of HK$1,347 during the same period). Cathay Pacific and Cathay Dragon reported a loss after tax of HK$7,361 million in the
first half of 2020, and the share of losses from subsidiaries and
associates was HK$2,504 million (2019 first half: profit of HK$672 million).
The loss for the first half of 2020 is net of the receipt of HK$1,060 million of COVID-19 related government
grants globally and includes impairment and related charges of HK$2,465 million relating to 16 aircraft
that are unlikely to re-enter meaningful economic service again before they retire or are returned to lessors,
and to certain airline service subsidiaries’ assets.