Cathay Pacific's loss shrinks in first half

Cathay Pacific posted a net loss of $973 million on Wednesday (August 11), somewhat down from the previous year.

The airline said drastic measures it took in headcount and strong air cargo demand helped its first-half loss shrink by nearly a quarter.

But Chief Financial Officer Rebecca Sharpe said Cathay is still going through the 'toughest period in its history'.

The airline was badly hit by border closures as passenger revenue fell 93% during the first six months of year.

The lag in Hong Kong's travel recovery also means the airline is at risk of losing some prized airport slots in the U.S. and Europe under its 'use it or lose it' rules.

Cargo demand was the main bright spot, which saw yields surge 24% and made up 80% of all revenue.

Looking ahead, Cathay has forecast monthly cash burn falling in the second half.

It also sees capacity rising as much as 30% of pre-health crisis levels in the fourth quarter - but the airline said that depends on quarantine rules being relaxed.

Last year the company cut costs with the loss of 5900 jobs and also ended its regional Cathay Dragon brand.