Cathay Pacific Group Releases Combined Traffic figures for August 2020
IFA Comment: This report follow on from last weeks announcement that 40% of the Cathay fleet will be placed in dry condition storage
Cathay Pacific and Cathay Dragon carried a total of 35,773 passengers last month, a decrease of 98.8% compared to August 2019. The month’s revenue passenger kilometres (RPKs) fell 98.1% year-on-year. Passenger load factor dropped by 60 percentage points to 19.9%, while capacity, measured in available seat kilometres (ASKs), decreased by 92.2%. In the first eight months of 2020, the number of passengers carried dropped by 81.7% against a 72.8% decrease in capacity and a 79.2% decrease in RPKs, as compared to the same period for 2019.
Cathay Pacific Group Chief Customer and Commercial Officer Ronald Lam said: “It is clear that we are facing a long and uncertain road to recovery. The entire aviation industry has been hit hard by COVID-19 and the environment will continue to be extremely challenging for many years.
“We have already taken decisive actions to reduce our costs, but despite these efforts we are burning cash at a rate of HK$1.5 billion to HK$2 billion per month, and will continue to experience significant cash burn until the market recovers. The recapitalisation provides us time and a platform from which to transform our business and continue to operate in the short term; however, it is an investment that we need to repay.
Link to read the Cathay Pacific full report