, Hong Kong

Cargo carrying Cathay Pacific back to operating breakeven: Jefferies

The airline’s cargo yield is also expected to be 2% higher h-o-h in 2H21.

Cathay Pacific is now back to operating breakeven, according to Jefferies, due to their “cargo business and lower cash burn with healthy liquidity.”

Based on the analyst report, the airline’s cargo capacity is at 70% of pre-pandemic levels, buoyed by robust demand in Hong Kong and Southeast Asia (SEA).

The airline management, however, said their current strong yields are unlikely to “continue forever.”

Jefferies predicted that Cathay Pacific’s 2H21 air cargo yields will be 2% higher h-h. Currently, the airline’s 2H21-to-date HK-US and HK-Europe air cargo yields are 30% and 29% higher than in 1H21. 

The airline’s strong cargo will likely offset Cathay Pacific’s pax traffic which the analyst expects to remain weak.

The management said the airline's pax traffic will likely remain at 10% pre-pandemic levels in November and December.

This rate translates into “2021 pax capacity -63% lower YoY and only 8% of 2019 pre-pandemic levels,” according to Jefferies.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Unemployment rate rises to 5.4% from February to April
The total number of unemployed people stands at 206,100.   The unemployment rate rose by 0.4 percentage points to 5.4%  from February to April, when compared to the January to March period.    Based on the data from the Census & Statistics Department (C&SD), the total number of unemployed people from February to April was 206,100, an increase of 17,600 from the preceding three-month period.   Meanwhile, the number of unemployed rose by around 25,000 to 142,000, translating to a rate of 3.8%.   With the increase in the number of jobless and underemployed individuals, total employment dropped to 3,559,200, whilst the labour force fell to 3,765,300.   The deterioration of Hong Kong’s labour market however should see an improvement in the coming months, according to Secretary for Labour & Welfare, Dr Law Chi-kwong.   The receding local epidemic situation and progressive relaxation of social distancing measures, the new round of Consumption Voucher Scheme, and Other relief measures including the 2022 Employment Support Scheme should help drive improvement in the employment sentiment, said the C&SD.  
Economy