Cathay Pacific expects to cut its monthly cash burn significantly over the next few months, as Hong Kong gradually eases onerous travel restrictions.
The carrier now expects monthly cash burn of around HK$500 million ($63.7 million), compared to between HK$1 and 1.5 billion disclosed in early March, when Hong Kong tightened pandemic curbs to battle a wave of Omicron infections.
Since then, Hong Kong has loosened restrictions - albeit only slightly - including lifting a travel ban on nine countries, namely key Cathay markets such as the USA and UK.
The beleaguered airline’s monthly passenger traffic in April remained in the doldrums - capacity remained at just 2% pre-pandemic levels - though Lam notes there were some signs of demand recovery.
Cathay flew over 40,000 passengers in April, about 82% higher year on year, but 99% down from pre-pandemic 2019.
Traffic rose 61% year on year, but was down nearly 99% against 2019, while capacity shrunk 30% against 2021.
Cathay is also eyeing the resumption of flights to several other destinations over the next few months, which will have a “positive impact” on cost base.
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