Despite suffering a loss of more than $800 million in 2022, Cathay Pacific stated that it anticipates a comeback as Hong Kong starts to once again attract visitors from abroad.
Although experiencing larger losses in 2022 than the previous year of 6.55 billion Hong Kong dollars ($834.4 million US), Cathay Pacific Airlines Ltd. declared that it was ready to rebound as Hong Kong started to once again welcome visitors from abroad.
Losses have increased by 18.5% when compared to the figures from 2021. It was partly because of the city’s severe admission limitations put in place during the first half of 2022. Revenue at Cathay Pacific increased by 12% to reach 51 billion Hong Kong dollars ($6.5 billion US dollars).
In addition, the company recorded its first operating profit since 2019 in 2022, totaling 3.55 billion Hong Kong dollars ($452 million US), as a result of Hong Kong’s relaxation of its quarantine regulations in the second half of the year. The future prospects for Cathay
Ronald Lam, CEO of Cathay Pacific, stated in the business’ 2022 annual report,
“The COVID-19 pandemic’s impact on travel restrictions made 2022 yet another difficult year for the Cathay Pacific Group. But in the second part of 2022, we were really heartened to see a clear light at the end of the tunnel, and the encouraging trend has continued into 2023.”
Cathay Pacific Chairman Patrick Healy blamed Air China, whose losses could have reached 39.5 billion yuan ($5.7 billion), at a news conference on Wednesday for the company’s huge loss in 2022. This represents the persistent consequences of the epidemic on its mainland investments and is more than double the losses it experienced the prior year.
Healy added that Cathay anticipates returning to the same level by 2024 and reaching 70% of its pre-pandemic flight capacity by the end of 2023.
Hong Kong will be linked to the rest of the world by Cathay
Cathay Pacific has taken longer to bounce back from the effects of Hong Kong aligning with mainland China’s limitations and attitude on COVID-19 than regional rivals like Singapore Airlines.
Hong Kong continued to require disguising as of March, and arriving travelers had to quarantine throughout the majority of 2022. Lam however asserted that by the end of the year, the airline had recovered to operating at 70% of capacity. He stated:
“In actuality, we are not lagging behind if you compare that speed with any airlines or any city in the globe. Despite having a different starting position, we are speedier than many carriers.” The airline is also having trouble finding crew members, and many flight attendants are upset about salary cuts and reduced downtime.
The corporation acknowledged challenges with personnel rosters, resource availability, timetables, and customer service hotlines in a statement and pledged to “try our utmost to minimize such inconveniences as we continue to rebuild.”
“We are committed to reconnection, which includes reconnection of Cathay Pacific with Hong Kong, the Greater Bay Area, and the Chinese mainland as well as reconnection of our hometown with the rest of the globe,” the airline said.