Cathay Pacific cut first half losses on the back of wide ranging job cuts and high cargo demand.
Passenger revenue fell 93% during the first six months of the year due to ongoing Covid travel restrictions.
The Hong Kong carrier posted a net loss of HK$7.57 billion ($973 million), in line with guidance that the figure would be somewhat smaller than last year.
That included HK$500 million of impairment charges mainly related to 11 grounded aircraft which are unlikely to return to service as well as HK$403 million of restructuring costs.
The airline has forecast monthly cash burn falling in the second half and capacity rising to as much as 30% of pre-Covid levels in the fourth quarter with the easing of travel curbs.
But the lag in Hong Kong’s travel recovery also means the airline is at risk of losing some key airport slots in places like the US and Europe under “use it or lose it” rules, Reuters reported.
Executive director Ronald Lam Siu-por said there was a “certain risk” the airline could lose its runway slots in future.
He warned: “We may lose some precious slots we have obtained over the years in overseas markets.
“That could harm the Hong Kong aviation hub status, so therefore it is important for Hong Kong to keep pace with the recovery in the rest of the world.”
Chairman Patrick Healy said: “Covid-19 continued to pose significant challenges for the Cathay Group in the first half of 2021 and this continues to be the toughest period in our history.
“Travel restrictions and quarantine requirements continue to affect cross-border travel adversely – the pace and timing of recovery remain uncertain.”