SIMIC

The carrier's net annual loss of HKD5.53 billion was much improved from its HKD21.8 billion deficit in 2020, due in part to strong cargo demand. Total revenue, however, slipped 2.9 per cent to HKD45.58 billion.

"Our cargo business performed exceptionally well," chairman Patrick Healy said in a statement, adding the group would "try to increase our cargo capacity as much as practicable."

To that end, Cathay partially converted six Boeing 777-300ER passenger planes into what it calls "preighters". All told, the group, including freight unit Air Hong Kong, took in HKD35.81 billion in revenue from cargo, 28.4 per cent more than in 2020.

That represented 79 per cent of its total revenue and made up for a 63.5 per cent drop in passenger revenues.

Cathay Pacific itself carried just 717,059 passengers last year, 84 per cent less than in 2020 and 98 per cent fewer than the pre-Covid days of 2019. Losses for budget unit Hong Kong Express rose 14.8 per cent to HKD1.98 billion last year.

The airline's yields, which measure revenues received in proportion to distance flown, rose 87.4 per cent for passengers and 33.1 per cent for freight from 2020.

Speaking to reporters, Mr Healy noted that in "a truly remarkable turnaround", the group's operations were profitable in the second half of 2021.

He described how Cathay went from burning cash at a rate of HKD2.5 billion to HKD3 billion a month in the early stages of the pandemic to being "marginally cash generative" in late 2021, before the delta and omicron Covid strains began appearing in Hong Kong in December.

"We are now in the third month of 2022, and it goes without saying that the start of this year has been even tougher than last," he said.'

Moves to tighten quarantine rules on aircrew and ban arriving passengers from nine countries and transit passengers from 150 nations have forced Cathay to cancel many planned flights.

"As a result, we expect to operate around 2 per cent of pre-Covid-19 passenger flight capacity, and our cargo flight capacity is likely to remain less than one-third of pre-COVID-19 levels while current restrictions remain in place," Mr Healy said.

"Unfortunately, these latest restrictions have put us back into a position where we will be burning cash once again," he said, putting the outflow at HKD1 billion to HKD1.5 billion a month.