Hong Kong-based Cathay Pacific reported a loss of HKD 5bn ($637mn) in 1H vs. a loss of HKD 7.6bn ($963mn) the previous year. Revenues rose 18% YoY to HKD 18.6bn ($2.4bn) driven by higher ticket sales and strong demand for air cargo. The airline indicated that Hong Kong’s strict Covid restrictions for aircrew impeded the carrier’s ability to exploit the rising demand for travel. The company expects passenger capacity to reach 25% of pre-pandemic levels by the end of the year. Chairman Patrick Healy said, “The airline’s huge backlog of retraining requirements for crew, many of whom had not flown for more than a year, could not be resolved until quarantine rules were lifted. This, combined with other operational complexities, means that capacity can only be increased gradually over a period of several months, following the removal of all COVID-related operating constraints.” Passenger load factor stood at 59%, up 19% YoY. According to analysts, the airline is expected to post a loss of HKD 4.5bn ($570mn) for 2022. In comparison, Cathay’s primary competitor, Singapore Airlines reported a net profit of $268.5mn as travel in the island nation opened up and rebounded.

Cathay’s 4.875% 2026s was down 0.43 points to 91.56, yielding 7.34%.

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