Hong Kong based Cathay Pacific Group today released their traffic figures for August 2020 where group carriers Cathay Pacific and Cathay Dragon only transported 35,773 passengers for the month, which is a 98.8% fall compared to the same month in 2019. Cargo carried also fell by 36.7% YoY as both airlines carried a combined 102,122 tonnes of cargo in August 2020.
The traffic performance was heavily impacted as a result of the COVID-19 Pandemic that has resulted in significant drops in demand for air travel which is further hampered as many countries have in place travel and border restrictions which again hinder the recovery for air travel.
Despite measures taken to reduce expenses during this period, the group’s cash burn is between HK$1.5 billion to HK$2 billion per month and expects to continue at this rate until conditions improve and stated that they are able to continue operating for now and would need to restructure the business to ensure business continuity.
The management of the group will likely set out their recommendations to the board in the Q4 on the future size and shape of the business to allow it to survive and be in a stronger position in this period of uncertainty.
Cathay Pacific Group Fleet Summary (as of 14 Sep 2020)
The group might see improved travel demand as the HKSAR Government’s initiative to set up travel bubbles with 11 countries and added that since they operate a skeleton network for the near future they have taken measures to store around 40% of their passenger fleet outside Hong Kong.
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