For the half year ending June 30, 2020, Cathay Pacific’s revenue fell by 48.3% compared to the same half in 2019. Revenue amounted to HK$27.7bn from HK$53.5bn in 2019. Cargo revenue increased by 8.8%, compared with a 24.6% decrease in capacity. Revenue from other services and recoveries decreased by 9.1%. The group’s total operating expenses decreased by 32.2% (with the combined Cathay Pacific and Cathay Dragon operating expenses decreasing by 36.7%).
Geographically, all regions saw losses in revenue. In Hong Kong and the Chinese mainland revenue fell by 36.3% to HK$16.8bn. Japan, Korea and Taiwan saw revenue fall to HK$1.9bn from HK$5.1bn in the same period of 2019. In the Americas, a decline of 60.9% was seen, with revenue totalling HK$2.9bn. Europe’s revenue fell from HK$5.3bn in 2019 to HK$1.9bn. Southeast Asia saw revenue reach HK$1.9bn, a 50.6% fall from HK$3.9 in H1 2019. In the Southwest Pacific region, revenue declined by 60.8% to HK$1.1bn. Lastly, in South Asia, the Middle East and Africa revenue fell from HK$2.6bn in H1 2019 to HK$1.1bn.
Cargo yield increased by 44.1% to HK$2.71 in the first six months of the year. There was an imbalance between capacity and demand in the cargo market, which led to higher cargo revenues compared to the first half of 2019. Cargo revenue in the first half of 2020 was HK$11.2bn, an increase of 8.8% compared to the same period in 2019. AFTK capacity decreased by 31.0%, reflecting the considerable loss of available capacity as a result of the extensive cuts to its passenger schedule. Typically, approximately half of Cathay’s cargo is carried in the bellies of its passenger aircraft. As a result, overall tonnage carried decreased by 31.9% to 667,000 tonnes. The load factor increased by 5.9 percentage points to 69.3%
As of 30th June 2020, Cathay Pacific operated 152 aircraft, Cathay Dragon operated 48 aircraft, HK Express operated 24 aircraft, and Air Hong Kong operated 11 aircraft (a total of 235 aircraft).
“Despite a promising start in January, with encouraging signs that passenger demand was beginning to return following the social unrest which impacted the second half of 2019, the first six months of 2020 were the most challenging that the Cathay Pacific Group has faced in its more than 70-year history. The impact of COVID-19 on the group’s business and the global economy is unprecedented. The global health crisis has decimated the travel industry and the future remains highly uncertain, with most analysts suggesting that it will take years to recover to pre-crisis levels,” said, Patrick Healy, Cathay Pacific Chairman.
Source: Cathay Pacific
*1HK$ = US$0.13/€0.12