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Cathay Pacific’s liquidity is high and the impact of Omicron is unclear – executives

File Photo: Signs of Cathay Pacific are seen on October 21, 2020 at Cathay Pacific headquarters in Hong Kong, China.Reuters / Ramik / File Photos

December 1, 2021

(Reuters)-Cathay Pacific Airways in Hong Kong maintains a strong liquidity position at a time when the impact of the Omicron variant of COVID-19 on travel demand remains uncertain, senior executives said Wednesday. ..

The airline said its liquidity of HK $ 31.7 billion ($ 4.07 billion) as of October 31 was slightly lower than HK $ 32.8 billion as of June 30, mainly due to the good performance of the air cargo business. ..

“It’s too early to assess the impact on travel demand,” said Ronald Lam, chief customer and commercial officer at Cathay, in an analyst briefing about the Omicron variant.

Cathay said last month that it expects significant losses for the full year, but expects significant improvements in second half performance from the first half.

Airlines continue to suffer from COVID-19 pandemic-related travel bans, operating at only 10% of pre-pandemic passenger capacity in October, with passenger numbers down 97.2% from 2019.

Cathay switched some inbound passenger flights to cargo last week after not volunteering enough pilots to fly the roster to a high-risk destination trapped in a hotel room for five weeks.

Hong Kong has added countries such as Australia, Canada, Germany and Israel to its list of high-risk destinations this week. This is because we are pursuing a COVID zero strategy in the hope that it will lead to the opening of the border with mainland China.

Lam said it was too early to provide a capacity outlook for the first quarter of 2022.

“I have hopes that someday in 2022, the Chinese mainland and Hong Kong governments may consider opening up,” he said of traveling abroad.

However, John Grant, chief analyst at travel agency OAG, said the financial center could soon regain its position as a major transportation hub as Hong Kong is more aligned with mainland China’s border policies. Said low.

($ 1 = HK $ 7.7955)

(Report by Jamie Freed in Sydney and Stella Qiu in Beijing, edited by Louise Heavens and Kim Coghill)



Cathay Pacific’s liquidity is high and the impact of Omicron is unclear – executives

Source link Cathay Pacific’s liquidity is high and the impact of Omicron is unclear – executives

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