Written by: Lin Leqian
2020-08-12 12:11Last update date: 2020-08-12 14:13
Cathay Pacific Airways (0293) announced its first-half results. During the period, it recorded a loss attributable to shareholders of 9.865 billion yuan and a profit of 1.3 billion yuan in the same period last year. It did not pay the first interim dividend.
According to the group, the loss during the period has been calculated to 1.06 billion yuan supported by local governments, including impairment and related expenses of 2.465 billion yuan, mainly involving 16 aircraft that cannot be re-entered for actual service before the summer of 2021, and certain aviation services Company assets.
The overall revenue during the period was 27.67 billion yuan, down 48.3% year-on-year. Fuel costs fell by 50.6% year-on-year to 732 million yuan. The reason was that the average jet fuel price fell by 20% and fuel consumption was reduced by nearly half. However, fuel hedging losses recorded 1.6 billion yuan, a substantial increase from 114 million yuan in the same period last year.
600 employees in Hong Kong dropped in half a year
Among them, Cathay Pacific Airways and Cathay Dragon Airlines lost 7.36 billion yuan in half a year, making 675 million yuan in the same period last year; Hong Kong Express (HK Express) lost 779 million yuan. In terms of business, passenger transportation revenue fell 70.5% year-on-year to 11.06 billion yuan, while freight revenue rose 10.4% to 12.69 billion yuan, surpassing passenger transportation performance.
As of the end of June, Cathay Pacific had employed more than 33,000 people worldwide, a decrease of 1,200 employees from the end of last year, of which 27,600 employees were from Hong Kong, a decrease of 600 people from the end of last year.
During the period, the funds attributable to shareholders of the group was 49.37 billion yuan, a decrease of 21.3% from the 62.77 billion yuan in the same period last year. However, the Hong Kong government took the lead in promoting the investment of 39 billion yuan just today (12), and the relevant funds have not yet been reflected in the financial situation.
Monthly cash loss reduced to 1.5 billion yuan
To cope with the impact of the epidemic, the Group has drastically reduced the load capacity, reduced senior management salaries, and implemented two rounds of voluntary special leave plans. Cathay Pacific has lost 2.5 to 3 billion monthly basic cash at the operational level from February to April. The loss is due to refunds to a large number of customers. As passenger transport services remain extremely low, the monthly cash loss has been reduced from May to about 1.5 billion yuan per month.
Cathay Pacific Chairman He Yili said that Cathay Pacific has seen the biggest challenge to the aviation industry in the near future. It is expected that the passenger business will not recover significantly for a long time. It will closely monitor market demand and gradually relaunch passenger flights depending on the situation. In the 4th quarter, the board of directors proposed the most suitable operation scale and model for Cathay Pacific. Considering that the current market outlook and cost structure are quite different from those before the crisis, the group will inevitably have to plan for the future. The carrying capacity is optimized.
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