Cathay Pacific suffered increased losses last year in the face of stringent Hong Kong Covid travel curbs.
The group posted an annual loss of HK$6.5 billion ($834.4 million) against HK$5.5 billion in 2021.
However, the carrier said its performance in the second half of 2022 saw a “marked improvement” as the Covid-19 situation in Hong Kong improved and restrictions were adjusted from May 1 ahead of quarantine rules being lifted in September.
Cathay Pacific carried 2.8 million passengers in 2022, an average of 7,682 per day, which was 291.1% more than in 2021. The load factor of 73.6% compared with 31.1% in 2021.
Chairman Patrick Healy said: “Cathay Pacific has experienced three challenging years due to the Covid-19 pandemic, with 2022 very much being a year of two halves.
“The emergence of the Omicron variant at the beginning of the year led to increasingly stringent travel and operational restrictions during the first few months of 2022, particularly in Hong Kong and the Chinese mainland.
“This significantly constrained our ability to operate both passenger and freighter flights. The challenge this posed for our business was exemplified on 12th March 2022 when we carried just 58 passengers.
“After three years of unprecedented disruption due to the Covid-19 pandemic, we are pleased to now be at the stage where we are rebuilding a new Cathay Pacific which Hong Kong can be proud of.
“We have a crystal-clear strategy that we are confident will deliver long-term success.”
He conceded that the pandemic had imposed a “significant impact” on the airline’s financial position.
Healy added: “We are grateful to the Hong Kong government and our shareholders for their continued support.
“As we rebuild our operations, our cash generation is improving.
“Going forward, we will continue to take a measured and prudent approach to our cash management given the need to invest in support of the further development of the Hong Kong international aviation hub with the opening of the three-runway system.
“The three-runway system at Hong Kong International airport is expected to be fully operational by early 2025, and this will usher in a new phase of exciting opportunities as well as increased competition.”
He said that the airline was “greatly encouraged” by the potential of re-connecting with the Greater Bay Area (GBA) covering Guangdong, Hong Kong and Macao.
“As Hong Kong is integrated economically into the vibrant GBA, we are eager to play our role,” Healy added.