Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Cathay Pacific to cut cash burn as cargo-crew quarantine measures relaxed

Stock MarketsApr 16, 2021 12:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Cathay Pacific aircraft is seen at Hong Kong International Airport 2/2

(Reuters) - Hong Kong's Cathay Pacific Airways (OTC:CPCAY) Ltd said on Friday a relaxation of quarantine requirements for its cargo crews would help to boost air freight capacity and lower its cash burn at a time when it has only a skeleton passenger service.

The airline had previously said rules that took effect on Feb. 20 and required most crew to quarantine for two weeks in hotels before returning to normal life in Hong Kong would increase cash burn by about HK$300 million to HK$400 million ($38.62 million-$51.49 million) per month, on top of the regular HK$1 billion to HK$1.5 billion levels.

"Just this week, the government announced that it would lift the mandatory quarantine requirement for fully vaccinated Hong Kong-based aircrew on freighters and cargo-only passenger flights from today," Cathay Chief Customer and Commercial Officer Ronald Lam said.

"This will have a positive impact on our cargo business while also progressively reducing our monthly operating cash burn."

It did not say by how much its cash burn would fall or by how much its freight capacity will rise. Shares were up 1.1% in trading before the announcement made during the Hong Kong market's lunch break.

The airline said there had been zero positive COVID-19 tests this year among the more than 18,500 tests its operating Hong Kong-based crew had taken in the days following their arrival in Hong Kong.

Cathay carried just 18,539 passengers in March, having cut capacity by 47% from February due to the crew quarantine rules.

However, Lam said the Hong Kong government's stated intention of lifting the mandatory quarantine period for travellers from mainland China and reducing it for those arriving from low- and

medium-risk places was a positive step in the right direction.

Cathay reported a record cargo load factor of 86.4% in March, though freight carriage fell by 29.6% from a year earlier.

Nearly 60% of Cathay's 2020 revenue of HK$47.9 billion was from its cargo operations, up from about 20% in 2019.

($1 = 7.7686 Hong Kong dollars)

Cathay Pacific to cut cash burn as cargo-crew quarantine measures relaxed
 

Related Articles

Is SemiLEDS a Winning Chip Stock?
Is SemiLEDS a Winning Chip Stock? By StockNews - May 11, 2021

Shares of SemiLEDs (LEDS), a Taiwan-based semiconductor manufacturer, have been rallying on the rising prices of semiconductors amid a global chip shortage. However, given that the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email