Cathay Pacific carrying losses

Hong Kong based Cathay Pacific is world’s one of the best airline carriers. Cathay Pacific is doing operations and scheduling the cargo services for more than 190 destinations. Cathay Pacific is the world's fifth largest airline measured by sales and fourteenth largest measured by market capitalization. 

The international airline is facing problems since two years. During 2019-20, its employees have participated in Hong Kong protests and causes Chinese angry over the management. Due to pandemic virus in 2020, Cathay Pacific was drastically reduced international flights and causes losses to the organization.

Hong Kong’s Cathay Pacific Airways has reported a record annual loss of $2.8bn (£2bn) for 2020. It posted worst-ever financial results. As expected Cathay’s poor financial performance due to Covid-19 pandemic. But the numbers released by Cathay Pacific are worse than the predicted numbers. As per the latest financial report, the management has focused more on preserving the cash and reducing the capital expenditure instead of extending its operations and development activities.

Aviation industry has been crippled globally with travel restrictions because of coronavirus. Cathay was deducted its number of passenger flights as demand plummeted. The number of passengers travel in Cathay drastically fell to 99% from an average of 100000 daily before the pandemic. 200 Cathay’s passenger planes have been grounded and send to China for storage. Cathay slashed 6K jobs in October and closed its regional airline Cathay Dragon. Hong Kong based Cathay is on verge of collapse in first half of 2020 but government and shareholders bailout with US$ 5 billion in June. Airline officials are in hope that vaccinations will be adopted in July or August.