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Cathay Pacific posts wider $834 million loss in 2022 upbeat on outlook

Cathay Pacific Airways plane making ready for takeoff from Melbourne Worldwide Airport.

Ryan Fletcher | iStock Editorial | Getty Photos

Cathay Pacific Airways is able to rebuild the airline and Hong Kong’s hub standing because it emerges from the pandemic, the service’s chief govt mentioned on Wednesday after it reported a 2022 loss on the low finish of forecasts.

Cathay shares rose as a lot as 1.4% to 7.95 Hong Kong {dollars} after the outcomes had been launched, reversing morning losses and beating a 2.4% drop within the broader market as buyers wager on a turnaround following heavy losses through the pandemic.

“We had been very inspired to see a vibrant gentle on the finish of the tunnel within the second half of 2022, and the optimistic momentum has continued into 2023,” Chief Government Officer Ronald Lam mentioned in an announcement.

“After three brutal years of the Covid-19 pandemic, we’ve got lastly entered into a brand new thrilling part, wherein we are going to rebuild Cathay Pacific for Hong Kong.”

The airline reported an annual lack of HK$6.55 billion ($834.4 million) for the 12 months ended Dec. 31, wider than the earlier yr’s loss however close to the underside of its January forecast for a lack of between HK$6.4 billion and HK$7 billion.

Analysts had anticipated a median annual lack of HK$4.4 billion, in response to Refinitiv knowledge. They forecast a HK$3.9 billion revenue for this yr now that Hong Kong and mainland China have ended border restrictions.

Cathay had parked a lot of its fleet within the desert through the pandemic due a scarcity of demand and its restoration has lagged behind conventional rival Singapore Airways, which confronted much less strict guidelines final yr.

The airline was badly hit by Covid-related flight cancellations, border closures and strict quarantine measures for crew, leading to drastic headcount reductions.

Cathay mentioned it was working about one-third of pre-pandemic passenger flight capability by December and ended the yr working passenger flights to 58 locations, double the 29 locations the airline flew to in January 2022.

It will function at about 70% of its prepandemic passenger flight capability by the top of 2023, with an goal to return to pre-pandemic ranges by the top of 2024. It was working about two-thirds of pre-pandemic cargo flight capability ranges by the top of 2022.