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Cathay Pacific operating at 2 per cent of normal capacity as Hong Kong remains sealed off

Company memo says airline will go through HK$1 billion (£97m) and HK$1.5 billion (£145m) every month ‘until conditions improve’

Lucy Thackray
Wednesday 09 March 2022 07:09 EST
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A Cathay Pacific Airways Boeing 747-400 at Hong Kong international
A Cathay Pacific Airways Boeing 747-400 at Hong Kong international (Getty Images)

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Hong Kong’s flagship airline Cathay Pacific is operating at just 2 per cent of its normal passenger capacity, the carrier has reported, as the international business hub remains sealed off to much of the world.

"We have had an extremely challenging start to 2022," chairman Patrick Healy said in the carrier’s Annual Results statement released Wednesday.

He announced that the airline would continue operation at around 2 per cent of its usual passenger volume, maintaining less than one third of its cargo flight load as Hong Kong’s border restrictions remain strict.

Mr Healy noted that government restrictions had tightened in recent months, with flight bans placed on key markets such as the US and UK, as well as additional rules added for flight crew quarantine.

A note sent by chief executive Augustus Tang on Wednesday and seen by Bloomberg News said that the airline will burn through between HK$1 billion (£97m) and HK$1.5 billion (£145m) every month “until conditions improve”. A Cathay representative verified the authenticity of the memo.

Last year Cathay Pacific flew an average of 2,000 passengers a day, down from more like 100,000 in pre-pandemic years.

Hong Kong has had one of the world’s strictest pandemic border policies, largely due to aligning with China’s response; while since the emergence of the Omicron variant, cases in the territory have soared. On 2 March it recorded more than 55,000 new cases.

At present, no one who has visited the UK in the last 14 days may enter Hong Kong or transit through its airport; Hong Kong residents are allowed to return to the territory but must show proof of full vaccination and quarantine for 14 days at a government-designated hotel.

“As Hong Kong’s home airline, we are resolutely committed to keeping the flow of people and cargo between Hong Kong and the rest of the world safely moving, and to protecting and enhancing the city’s aviation hub status despite the challenging circumstances presented by COVID-19,” Mr Healy said in today’s statement.

“We have absolute confidence in the long-term future of Hong Kong.”

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