Cathay Pacific reduced its losses by 34 per cent from HK$7.6 billion to HK$5 billion (approx. €616.5 million) in the first half of 2022, the Hong Kong carrier reported on Wednesday.
The carrier’s revenue increased 17 per cent to HK$18.6 billion compared to 2021, largely driven by an increase in ticket sales and persistent strong demand for air cargo. However, passenger numbers remained 95.2 per cent below pre-pandemic levels.
Even after an international flight ban was lifted in April and connections between major hubs such as London recommenced, Cathay chairman Patrick Healy said the city’s strict quarantine requirements stifled recovery as cabin crew were also subject to the seven-day quarantine period.
Earlier this week, Hong Kong authorities announced mandatory hotel quarantine for international visitors will be reduced from seven to three days, and while Healy excepts this to “improve traveller sentiment”, he said a lingering “bottleneck” will continue to impede the carrier’s recovery.
“While we are fully committed to supporting our home city, our ability to operate more flight capacity continues to be severely constrained by a bottleneck on crewing resources under the existing quarantine requirements,” he said. “We will only be able to operate more flight capacity when the existing stringent travel restrictions and quarantine requirements applicable to Hong Kong-based aircrew are lifted.”
He added: “We are targeting to progressively increase passenger flight capacity up to a quarter and cargo flight capacity to 65 per cent of the pre-pandemic level by the end of 2022. This gives us confidence that our airlines and subsidiaries will see a stronger second-half than first-half performance.”
In anticipation of rising global demand and a further relaxation of Covid-related restrictions, the carrier is returning aircraft parked overseas to Hong Kong and plans to hire more than 4,000 frontline staff “to meet operational needs” over the next 18-24 months.
Hong Kong’s reduced quarantine measures will come into effect on Friday 12 August, where inbound travellers will be subject to a “3+4 model”, which includes three days of quarantine in a designated hotel, followed by a “medical surveillance” period of four days which requires self-monitoring and daily covid-19 testing. During the medical surveillance period travellers are not allowed to enter “high-risk premises” that involve group activities or the removal of face masks. “Essential activities” such as travelling on public transport, going to work, or entering a supermarket are permitted.