Cathay Pacific predicts profit of up to HK$4.5bn for first half of 2023

Cathay Pacific Airways has predicted a consolidated profit of up to HK$4.5bn for the first half of 2023, a sharp increase from the HK$5bn loss for the first half of 2022. The forecast also represents the company's return to profitability following losses totaling approximately HK$33.7bn over three years of the pandemic.

Cathay's chief executive officer Ronald Lam said on a blog post that the company is very encouraged to see that its journey of rebuilding Cathay is on the right track. "We have seen a trend of continuous improvement in the performance of our airlines and our financial position is healthy. These reflect the growing strength of our business and the progress we are making in rebuilding Cathay. We are very grateful to both the HKSAR Government and our shareholders for their continued support during and after the pandemic," he added.

To thank its staff for their commitment and support, the company has also launched a Special Appreciation Reward for those who have been with the company through the pandemic of up to six weeks of eligible pay, which will be paid in the September payroll.

All employees who joined the Cathay Group on or before 31 December 2022 will receive two weeks of eligible pay, and those who also participated in a Special Leave Scheme or equivalent during 2020 to 2022 and have been continuously employed since then will be eligible for an additional four weeks of eligible pay. 

With the latest forecast, the Cathay Group paid the deferred dividend of HK$1,524.1m on the preference shares held by the Hong Kong government on 30 June, bringing its deferred dividend payments up to date. It intends to pay all future preference shares dividends as they fall due. Furthermore, the Cathay Group plans to buy back all the preference shares over the next 12 months.

Don't miss: Cathay's flight attendant union slams management for ignoring manpower shortages

Back in May, The Cathay Pacific Airways Flight Attendants Union has slammed the company management for ignoring manpower shortage issues. The union defended its frontline cabin crew members and requested the airline company to provide clear guidance on staff protection, after three staff were laid off for allegedly making fun of non-English speaking passengers.

According to the official statement, the union said Cathay's cabin crew members have always respected and treated all passengers from different countries equally, providing attentive service to passengers from different cultural backgrounds. "Our crew members follow the company's guidelines and communicate with passengers in English or other languages that have been assessed by the company," the statement read. 

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