A signage for Cathay Pacific Airways at the departures hall of Hong Kong International Airport in Hong Kong, on March 8, 2023. (PHOTO / AP)

HONG KONG  - Cathay Pacific Airways forecast a consolidated profit for the first half of 2023 on Friday, after multiple years of pandemic-related border closures and strict quarantine measures.

"The Cathay Group has seen a strong rebound in the performance of our airlines. Our cash flow has continued to improve; further to being overall operating cash generative in 2022, the Group has been operating cash generative so far in 2023," according to a statement issued Friday. 

Hong Kong's flagship carrier parked much of its fleet during the pandemic due to a lack of demand. The airline was also hit by COVID-related flight cancellations and drastic headcount reductions owing to quarantine restrictions.

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A total of 1,417,906 passengers flew last month, an increase of 2,345 percent compared with May 2022

"The Cathay Group has seen a strong rebound in the performance of our airlines (and) our cash flow has continued to improve," the airline said in a statement, adding that the group had been operating cash generative so far in 2023.

The airline carried about 6.3 million passengers in the first five months of 2023, compared with a meagre figure of about 185,000 last year. A total of 1,417,906 passengers flew last month, an increase of 2,345 percent compared with May 2022.

“The peak summer season looks promising as we expect to get a boost from students returning to Hong Kong after the school term ends," Chief Customer and Commercial Officer Lavinia Lau said in a statement. 

For the 12 months ended Dec 31, Cathay Pacific had reported a loss attributable to ordinary shareholders of HK$7.16 billion ($914.43 million). "We expect that the Group will deliver a consolidated profit for the first half of 2023,” Lau said.

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Based on Refinitiv Eikon estimates, Cathay Pacific is expected to record an annual profit of HK$3.44 billion this year, compared with a loss attributable of HK$7.16 billion last year.

An estimated HK$1.90 billion one-off gain from the near 1.9 percent stake sale in Air China is also expected to benefit the bottom line in the first half, the airline said.

With Reuters inputs