Cathay Pacific posts record $2.8bn loss for 2020

Hong Kong’s Cathay Pacific Airways has reported a record annual loss of $2.8bn (£2bn) for 2020.

Its poor results were due to a sharp downturn in travel during the pandemic along with major restructuring costs.

Cathay Pacific had previously warned it expected its second-half losses to be worse than the record first-half loss of $1.3bn.

Last year’s loss compared with a profit of $220m in 2019, when profits were hit by political turmoil in Hong Kong.

Cargo was the best performer for the airline, though it too saw a downturn, because the reduction in passenger flights, which also carry cargo, caused a reduction in capacity.

“Our short-term outlook continues to be challenging. However, we remain absolutely confident in the long-term future and competitive position of our airlines,” the airline’s chairman Patrick Healy said.

– Bloomberg

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