Hong Kong’s Cathay Pacific posts $834 million loss for 2022

HONG KONG — Cathay Pacific Airways Ltd. stated it was able to rebuild as Hong Kong opened as much as international guests, regardless of reporting wider losses in 2022.

The airline reported an annual lack of 6.55 billion Hong Kong {dollars} ($834.4 million) for the yr ending Dec. 31 — an 18.5% improve in losses from 2021 amid strict entry restrictions into town in the course of the first half of 2022. Nonetheless, Cathay noticed income develop 12% to 51 billion Hong Kong {dollars} ($6.5 billion), and in addition posted an working revenue of three.55 billion Hong Kong {dollars} ($452 million) for the primary time since 2019 as quarantine necessities in Hong Kong have been relaxed within the second half of 2022.

“2022 was one other difficult yr for the Cathay Pacific Group as a result of journey restrictions introduced by the COVID-19 pandemic,” Cathay CEO Ronald Lam stated in a press release. “Nonetheless, we have been very inspired to see a vibrant mild on the finish of the tunnel within the second half of 2022, and the constructive momentum has continued into 2023.”

Cathay attributed the numerous loss in 2022 to outcomes from its associates, together with Air China, that “mirrored the persevering with influence of the COVID disaster on our Chinese language mainland investments,” Cathay chair Patrick Healy stated throughout a information convention Wednesday.

In 2022, Cathay held about an 18% stake in state-owned Chinese language provider Air China, which stated earlier this yr that it anticipated losses of as much as 39.5 billion yuan ($5.7 billion) — greater than double its losses within the yr earlier than.

Cathay stated it could be working at about 70% of pre-pandemic passenger flight capability by the tip of 2023, and goals to return to pre-pandemic ranges by the tip of 2024.

Cathay has been slower to get better than regional rivals resembling Singapore Airways after Hong Kong aligned with mainland China’s restrictions and stance on COVID-19. The town was among the many final locations on the earth to ease masking necessities in March, and for many of 2022 had required incoming vacationers to serve a compulsory quarantine.

The airline can be fighting a scarcity of crew members in addition to dissatisfaction by many flight attendants over pay cuts and fewer relaxation time.

“We acknowledge there have been difficulties concerning crew rosters, resourcing, schedules and buyer assist hotlines,” stated Healy. “We are going to proceed to do our utmost to reduce such points as we proceed to rebuild.”