Monday, January 17, 2022

Cathay Pacific lowers Q4 capacity forecast as travel restrictions

Hong Kong’s Cathay Pacific Airways Ltd said on Monday it has lowered its passenger capacity forecast for the rest of the year to 13 per cent of pre-COVID levels as travel restrictions eased for the fourth quarter. This is below the earlier target of 30 per cent.

The airline said it continued to target a cash burn of less than HK$1 billion ($130 million) a month for the rest of the year.

Hong Kong lacks a domestic aviation market and has some of the toughest pandemic-related travel restrictions in the world.

The city requires fully vaccinated travelers from “high-risk” destinations, including the United States and Britain, to spend three weeks in hotel quarantine.

Cathay said last month that its goal of reaching 30 percent of pre-COVID passenger capacity in the fourth quarter hinges on quarantine rules for passengers and crew.

The airline said passenger numbers in August were better than previous months as there were more students from China to the United States and Britain, but down 95.3 percent from the same month in 2019.

Cathay said the cargo market strengthened in August, with cargo demand rising to peak season levels.

Air cargo accounted for 80 per cent of the airline’s revenue in the first half of the year due to the pandemic-related hit on passenger demand.

Cathay said separately on Monday that it committed to using sustainable aviation fuels (SAFs) for 10 percent of its fuel consumption by 2030 as part of its broader commitment to reach net zero carbon emissions by 2050. Was.

Delta Air Lines and British Airways owner IAG set similar 2030 SAF targets earlier this year.

Doing so would require a major ramp-up in production because SAFs currently account for less than 0.1 percent of jet fuel, according to airlines group IATA.

Cathay said a deal with Fulcrum Bioenergy would provide access to some SAFs for flights departing from the United States from 2024.

by Jamie Freed

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This News Originally From – The Epoch Times

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