Cathay Pacific Projects Wide‑Range Loss for 2022 Amid Signs of Recovery
Cathay Pacific Airways Ltd. has announced that it expects a fiscal‑year‑2022 loss ranging from HK$6.40 billion to HK$7.00 billion, which corresponds to a maximum of US$893.77 million. The figure was disclosed on January 22, 2023, and exceeds the HK$4.17 billion loss that analysts had projected according to Refinitiv data.
The airline’s actual loss for the twelve months ending December 31, 2022, was HK$5.53 billion. Chief executive Ronald Lam said the outlook remains positive despite the projected deficit, pointing to the easing of quarantine rules in Hong Kong and mainland China as a catalyst for improvement. He noted that the relaxation of those measures has already produced a continuing uplift in operations and financial results for the carrier and its subsidiaries during the second half of 2022.
The improved sentiment is mirrored across the sector; other Chinese carriers, including Air China Ltd., reported disappointing December results as they grappled with capacity constraints. The broader airline industry has been weighed down by Beijing’s strict pandemic‑related travel curbs, and Cathay Pacific has not been immune to those pressures.
Lam added that the lifting of quarantine restrictions has sparked a surge in short‑haul leisure travel demand, a trend the airline anticipates will persist through January and the upcoming Chinese New Year period. In contrast, the air‑cargo segment softened in the fourth quarter of 2022 compared with the same quarter a year earlier. Passenger traffic has also begun to recover now that both passenger and crew quarantine requirements have been relaxed, yet the airline’s capacity remains far below pre‑COVID levels. Specifically, capacity was down 67.8 % in the most recent month when measured against December 2019 figures.
Former chief executive Augustus Tang, speaking to Bloomberg in October 2022, emphasized that the airline’s post‑pandemic rebound hinges on the relaxation of travel restrictions and the return of passenger demand. In line with that view, Cathay Pacific aims to restore its passenger‑capacity utilization to roughly 70 % of pre‑pandemic levels by the close of 2023.
To support that goal, the carrier plans to bring on approximately 4,000 new employees over the next eighteen to twenty‑four months, rebuilding the workforce that was trimmed during the crisis. Lam described the hiring initiative as a constructive step toward recovery, saying the airline is committed to restoring its operations and service standards to where they were before the pandemic. The International Air Transport Association echoed the importance of loosening travel barriers.
Its director general, Willie Walsh, told a December 2022 press conference that the industry’s recovery will depend on how effectively governments manage the health situation and rebuild traveller confidence.
