The flag carrier of Hong Kong, Cathay Pacific said that it had recorded an annual loss of $2.8 billion (HK$21.6 billion) previous year because of COVID-19 pandemic.
The financial performance of the company sank even lower than predicted. In the second half of 2020, losses increased to HK$11.7billion from the previously announced HK$9.9 billion.
The company’s air freight operations which is one of the largest cargo airlines in the world has saved the company from recording even deeper losses as the prices soared due to the high demand for shipments.
As the pandemic advanced, the airlines went on a cost-cutting spree, which closed its cathay Dragon subsidiary and making almost about 8500 redundancies.
Patrick Healy, the chairman of Cathay Pacific said in statement
The past 12 months was “the most challenging” in the airline group’s history, and warned of an uncertain future.
“Market conditions remain challenging and dynamic, It is by no means clear how the pandemic and its impact will develop over the coming months, all our cash preservation measures will continue unabated,”
“Our short-term outlook continues to be challenging. However, we remain absolutely confident in the long-term future and competitive position of our airlines … as we recover and rebuild from the impact of Covid-19.”
There was a huge decline in take-up rate of jab bookings in Hong Kong’s inoculation drive which was directly linked to increasing concern over people seeking hospital treatment after receiving the Sinovac vaccine.
The executives will receive lower wage throughout this year while a majority of staffs and other overseas employee have opted to take a pay cut.
The CEO Augustus Tang Kin-wing in an internal memo urged all the employees to get vaccinated, saying inoculation would help lift travel restrictions.
