Executive warns Cathay could lose overseas runway slots if Hong Kong stays shut, as airline reports HK$7.6 billion loss for first half of year
- If travel restrictions cost Cathay its slots – usually granted on a ‘use it or lose basis’ – it would harm Hong Kong’s aviation hub status, executive director says
- Cathay managed to narrow its losses in the first half of 2021, with its cargo business accounting for four-fifths of revenue
The assessment came as the company on Wednesday unveiled losses of HK$7.6 billion (US$977 million) in the first half of 2021, a modest improvement over the shortfall posted in the same period last year.
Airports generally grant runway slots on a “use it or lose it” basis, and as travel begins to rebound outside Asia, many have started removing exemptions on usage that were granted to airlines unable to fly due to the Covid-19 pandemic. On Wednesday, Cathay executive director Ronald Lam Siu-por acknowledged to analysts that there was a “certain risk” the airline could lose its runway slots in future, though he did not specify where.
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Hong Kong's Cathay Pacific Airways reports US$977 million loss in first half of 2021
“We may lose some precious slots we have obtained over the years in overseas markets. That could harm the Hong Kong aviation hub status, so therefore it is important for Hong Kong to keep pace with the recovery in the rest of the world,” Lam warned.
The situation could also crimp Cathay’s recovery. In the first six months of 2021, the airline managed to partially stem its losses, due in part to the continued strong performance of its air cargo business.
But Hong Kong’s flagship airline said new coronavirus variants continued to hold back its core business, passenger travel.