Cathay Pacific’s motto “Move Beyond” is proving hard for the Hong Kong flag carrier to put into practice. New quarantine rules mean the pandemic increases the drag factor on financial recovery. The shares fail to discount this fully.
The net loss for 2020 was $2.8bn, the worst in the airline’s 75-year history. The figure undershot low market expectations as impairment charges and restructuring costs surged to about $1bn. Passenger traffic fell 99 per cent in January.
Near the end of last year, Cathay’s outlook improved as vaccination programmes began. The business had already received a $5bn recapitalisation led by the Hong Kong government. Shares gained more than a third from a September low, reflecting hopes that air travel and liquidity were on the mend