Cathay Pacific continues to suffer more than any other airline in Asia from the decline in air traffic. The covid-19 pandemic has been compounded by the reluctance - justified or not - of many travellers to pass through Hong Kong because of the new security law imposed by China.
In September, the Hong Kong carrier's capacity was only 9% of its usual capacity. On average, Cathay Pacific carried 1,568 passengers per day last month, with a fill rate of 25%. That's just over 47,000 passengers over the whole month, a fall of 98% compared with September 2019.
According to Ronald Lam, Chief Customer & Commercial Officer of Cathay Pacific Group, the company expects to operate only 10% of its usual capacity by the end of the year.
An average capacity of 50% in 2021
It estimates that it will be able to offer 25% of its capacity in the first half of 2021. Smoothed out over the year, the average capacity offered by the company would be just under 50%This figure will depend on the marketing of a vaccine.
As a result, the company has announced a restructuring plan involving the loss of 8,500 jobs, including 600 outside Hong Kong.
The most spectacular announcement made this Wednesday morning on the Hong Kong stock exchange was the disappearance on 21 October of Cathay Dragonair, the carrier's regional subsidiary. Formerly Dragonair, it adopted the name Cathay Dragon in 2016, better reflecting its integration into the group. It mainly served cities in mainland China and Asia.
Cathay's management is now waiting for the regulatory authorities to approve the transfer of the majority of Cathay Dragon's routes either to Cathay Pacific or to its other low-cost subsidiary, Hong Kong Express..
