Cathay Pacific reported a net loss of HKD 21.65bn ($2.8bn) for 2020, its worst ever on record. The airline reported a loss of HKD 9.87bn ($1.27bn) in 1H2020 and another HK$11.8bn ($1.5bn) in the second half of the year. The losses include impairment and related charges of HKD 4.1bn ($530mn) on 34 aircrafts unlikely to re-enter meaningful service again, HKD 4bn ($520mn) of restructuring costs, and HKD 1.6bn ($210mn) write-off of deferred tax asset of Cathay Dragon. Cathay’s cash burn is over HKD1.5bn ($190mn) a month. The airline said they expect to operate well below 50% passenger capacity this year and they would maintain cash preservation measures including executive pay cuts. Cathay raised HKD 39bn ($5bn) in a recapitalization plan in July, and year end liquidity stood at HKD 28.6bn ($3.7bn). Besides they also raised ~$775bn via a convertible bond sale in January. Cathay’s SGD 3.375% 2023s were stable at 97.56, yielding 4.76%.

For the full story, click here

Show Buttons
Hide Buttons