Financial News
Author: Zhai Ziqian
2020-08-14 12:26
Last update date: 2020-08-14 12:29Cathay Pacific Airways announced July passenger and cargo traffic data. Cathay Pacific and Cathay Dragon carried a total of 42,900 passengers in July, a 98.7% decline year-on-year; the number of passengers carried in the first seven months fell by 79.4% year-on-year, while capacity fell by 69.9% . According to the group, due to the continuation of the COVID-19 global epidemic and the implementation of travel restrictions and quarantine measures by the governments of Hong Kong and many countries, the group continued to significantly reduce its capacity during the month in response to weak demand.
Lin Shaobo, President of Cathay Pacific’s customer and commercial operations, said that the number of passengers carried in early July was slightly improved due to the increase in the number of transit passengers transiting through Hong Kong. The group gradually resumed some flights to and from Chengdu, Xiamen, Frankfurt and Toronto. However, in response to a new wave of epidemics that broke out in many countries in late July, resulting in another decline in passenger demand, the increase in passenger traffic in July was less than that of capacity.
Cathay Pacific Group’s capital restructuring plan has been completed a few days ago, and will make recommendations to the board of directors on the company’s future operating scale and model in the fourth quarter of this year, in order to maintain competitiveness under the new normal of the industry. (Profile picture)
Passenger capacity in August is 8% of normal
In addition, Cathay Pacific quoted the International Air Transport Association (IATA) as saying that international passenger transport demand will not return to the level before the epidemic until 2024, which is delayed by one year from its earlier forecast. Cathay Pacific has adjusted its overall passenger capacity in August to 8% of normal capacity in response to a new round of the epidemic in Hong Kong and other regions, and expects to operate passenger flights at a similar level in September.
Market demand can be seen in the future will not return to normal
He said that in addition to the epidemic, the group also has to face the negative impact of the global economic recession and geopolitical tensions on tourism and freight demand, and believes that market demand will not return to normal in the foreseeable future.
In addition, Cathay Pacific welcomes the resumption of services from Mainland China and transit via Hong Kong International Airport starting from tomorrow. This will help increase the group's passenger traffic through the Hong Kong hub and provide important connections for Mainland China to the rest of the world.
Cathay Pacific loses 9.9 billion in half a year in its stock price
Cathay Pacific responds to layoffs: "difficult but necessary decisions" must be made
Cathay Pacific loses 9.9 billion in half a year, no dividends, fuel hedging loss of 1.6 billion, stock price rises by more than 10%
Cathay Pacific Airlines Hong Kong Aviation Industry