Cathay Pacific Group reveals results of drastic capacity cuts
Cathay Pacific and Cathay Dragon carried 99.4% fewer passengers in May of 2020.
The Cathay Pacific Group has released its combined traffic figures for May 2020, which reflected the airlines’ 97% capacity reduction due to reduced demand and travel restrictions worldwide.
In May, Cathay Pacific and Cathay Dragon carried 18,473 passengers in total, which was 99.4% less than what the number carried in May 2019. The month’s revenue passenger kilometres (RPKs) fell by 99.1% YoY, while passenger load factor and available seat kilometres (ASKs) took a dive to 29.6% and 97.5%, respectively. From January to May, the number of passengers carried dropped by 71.2%, against a 59.5% decrease in capacity and a 67% reduction in RPKs.
The two airlines carried 41.3% less cargo and mail last month, compared to April. The month’s revenue freight tonne kilometres (RFTKs) fell 29.1% YoY. The cargo and mail load factor increased by 73%, while available freight tonne kilometres (AFTKs) was down by 37.9%. From January to May, the tonnage dwindled by 29.7% against a 27.9% fall in capacity and a 22.3% decrease in RFTKs, as compared to the same period for 2019.
Considering these figures, the Cathay Pacific Group is expecting a substantial loss in the first half of this year. It has already announced a HK$39 billion recapitalisation plan last week to survive the current downturn, and will re-evaluate all aspects of its business model in light of these changes.