Despite incurring wider losses of 6.55 billion Hong Kong dollars ($834.4 million US dollars) in 2022 compared to the prior year, Cathay Pacific Airways Ltd. stated that it was prepared to recover as Hong Kong began to welcome international travelers again.

Compared with the numbers in 2021, there is an 18.5% increase in losses. It was largely due to the strict entry restrictions imposed on the city in the first half of 2022.

Cathay Pacific experienced a 12% surge in revenue, which totaled 51 billion Hong Kong dollars ($6.5 billion US dollars). Additionally, the company posted an operating profit of 3.55 billion Hong Kong dollars ($452 million US dollars) in 2022, the first time since 2019, due to the loosening of quarantine requirements in Hong Kong during the second half of the year.

Cathay's outlook on the future

Cathay Pacific CEO Ronald Lam said in the company's 2022 annual report,

"2022 was another challenging year for the Cathay Pacific Group due to the travel restrictions brought by the COVID-19 pandemic. However, we were very encouraged to see a bright light at the end of the tunnel in the second half of 2022, and the positive momentum has continued into 2023."

At a news conference on Wednesday, Cathay Pacific Chairman Patrick Healy attributed the company's significant loss in 2022 to its associates, particularly Air China, whose losses amounted to as much as 39.5 billion yuan ($5.7 billion). This is more than double the losses it incurred in the previous year and reflects the ongoing effects of the pandemic on its mainland investments.

Healy further revealed that Cathay expects to reach 70% of its pre-pandemic flight capacity by the end of 2023 and to return to the same level by 2024.

Cathay Pacific
Photo: Cathay Pacific

Cathay's plan to reconnect Hong Kong to the world

Compared to regional competitors such as Singapore Airlines, Cathay Pacific has been slower to recover from the impact of Hong Kong aligning with mainland China's restrictions and stance on COVID-19.

As late as March, Hong Kong still had masking requirements in place, and for much of 2022, incoming travelers were required to quarantine. Nevertheless, Lam declared that the airline had managed to bounce back to 70% of its capacity by the end of the year. He said,

"If you compare that pace with any airlines or any city in the world, in fact, we are not falling behind. We are faster than many parts of the airlines, just that our starting point was different."

Cathay Pacific Airbus A350
Photo: Terry K | Shutterstock

The airline is also struggling with a shortage of crew members as well as dissatisfaction by many flight attendants regarding pay cuts and less rest time. In a statement, the company said that it recognized difficulties in crew rosters, resourcing, schedules, and customer support hotlines and said it would do its "utmost to minimize such issues as we continue to rebuild."

Healy said,

"We are focused on reconnecting, and this means reconnecting Cathay Pacific with Hong Kong, the Greater Bay Area, and the Chinese mainland, as well as reconnecting our home city to the world,"

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