Cathay Pacific’s $7.8b bridge loan extended for 12 months

It is effective until 8 June 2023.

The Hong Kong government has extended the drawdown period for Cathay Pacific’s $7.8b bridge loan facility for another 12 months until 8 June 2023, the airline said in a statement.

Cathay Pacific CEO Augustus Tang said the airline welcomes the government’s support and continued confidence in the company’s future despite the short-term challenges posed by the pandemic.

“Since the beginning of the COVID-19 crisis, we have remained focused on prudent cash management. Despite the difficult operational environment, we have not had to draw down the facility over the past 12 months,” Tang said. 

“The further extension of the drawdown period is greatly appreciated and will provide us with flexibility to manage our liquidity position,” he added.

The Government provided a bridge loan facility to the airline of $39b recapitalisation last 9 June 2020 to help the company maintain its competitiveness and operations amidst the pandemic.

Cathay Pacific Group said liquidity remains at a “healthy level” at $30.3b as of end-2020, higher than the $28.6b posted in the previous year.

It is also augmenting back capacity as the government adjusts travel restrictions and quarantine requirements. The company also targets to reduce operating cash burn to less than $0.5b monthly for the next few months.

Tang said that as they have restructured as an impact of the pandemic, they have already recommenced hiring as they anticipate the recovery of Hong Kong and global aviation in the next 18 to 24 months.