Cathay says it is ‘close’ to breaking even, apologises to quarantined staff, as FedEx reveals it will not reopen Hong Kong pilot base

Cathay Pacific announced on Wednesday that it had finally begun to staunch its massive monthly operating losses, but Hong Kong’s flagship airline warned of further bleeding under the city’s tough Covid-19 rules and apologised to staff for the unprecedented impact on large numbers of aircrew and their families forced to undergo quarantine.

The beleaguered carrier said it came “close” to breaking even between July and October, and that its financial performance would see a “considerable improvement” in the second half of the year, though it would still record a “substantial” loss for 2021 as a whole.

However, Wednesday’s rare spot of positive financial news for Cathay was offset by renewed concerns over Hong Kong’s continued status as an air cargo hub after the global package delivery giant FedEx announced it had given up any hope of reopening its pilot base in the city.

The company blamed harsh anti-pandemic policies that left “no clear timeline” for when the city would return to normal.

In Cathay’s October business report, chief customer and commercial officer Ronald Lam Siu-por acknowledged that the “operating environment continues to be one of considerable uncertainty”.

He added: “Travel and operational restrictions continue to greatly impact our ability to mount flights and we are still facing many challenges to both our passenger and our cargo business as the Covid-19 situation in different parts of the world continues to evolve.”