Cathay Pacific announces deep losses for 2020

Cathay Pacific has reported a net loss of HK$21.648bn ($2.8bn) for 2020 compared to a profit of HK$1.691bn in 2019. The loss for 2020 is net of the receipt of HK$2.689bn of COVID-19-related government grants globally and includes impairment and related charges of HK$4.056bn relating to 34 aircraft that Cathay states are “unlikely to re- enter meaningful economic service again before they retire or are returned to lessors”. Cathay also reported nearly HK$4bn of restructuring costs inclusive of a HK$1.59bn write off of a deferred tax asset at Cathay Dragon. Cathay announced a HK$39bn recapitalisation in June 2020 and its