Daily Management Review

Cathay Pacific to turn profit for the first time in three years


Cathay Pacific, the flag carrier of Hong Kong, provided passenger traffic data for May and stated that it anticipates making a profit for the first half of the year. The carrier, which was forced to ground the majority of its aircraft during the pandemic and incurred unprecedented losses as a result, will now post its first half-year profit in three years.

Alan Wilson
Alan Wilson
According to the firm, passenger traffic increased by 2,345% from May 2022 to 1.42 million last May. The airline carried 6.3 million passengers in the first five months of the year as opposed to 185,000 in the same period last year, an increase of 3,281%.

The airline's load factor increased by 24.7 percentage points to 85.1% in May 2023 compared to May 2022, while its marginal passenger traffic increased by 1,152%. 3,347 more flights were available in May 2023, an increase of 180.9%.

Additionally, there was 18.8% more freight transported last month. In light of all of this, Cathay Pacific stated in a statement that "we expect the group to make a consolidated profit in the first half of the year", without providing any further details. Refinitiv predicts that the Hong Kong-based carrier would report a record profit of $439 million for the entire year, as reported by Reuters. The business lost $914 million in 2022.

source: reuters.com