INTERIM REPORT 2020 - Cathay Pacific

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INTERIMREPORT 2020Cathay Pacific Airways LimitedStock Code: 00293

Hong Kong—————Cathay PacificCathay Pacific FreighterCathay DragonHK ExpressAir Hong KongNote: pre COVID-19 pandemic route mapContents2 Financial and Operational Highlights3 Chairman’s Statement6 Review of Operations16 Financial Review19 Review Report20 Condensed Financial Statements39 Information Provided in Accordancewith the Listing RulesDisclaimerCorporate InformationCathay Pacific Airways Limited is incorporated inHong Kong with limited liability.Investor relationsFor further information about Cathay Pacific Airways Limited,please contact:Corporate Affairs DepartmentCathay Pacific Airways Limited9th Floor, Central TowerCathay Pacific CityHong Kong International AirportHong KongEmail: ir@cathaypacific.comCathay Pacific’s main internet address iswww.cathaypacific.com

CATHAY PACIFIC AIRWAYS LIMITED(“Cathay Pacific”), with its subsidiaries Hong Kong DragonAirlines Limited (“Cathay Dragon”), Hong Kong ExpressAirways Limited (“HK Express”) and AHK Air Hong KongLimited (“Air Hong Kong”), operated 235 aircraftimmediately prior to the onset of COVID-19, directlyconnecting Hong Kong to 119 destinations in 35countries worldwide (256 and 54 respectively withcodeshare agreements), including 26 destinations in theChinese mainland. According to IATA’s 2019 World AirTransport Statistics, the Cathay Pacific Group is theworld’s eighth-largest carrier of international passengers,and the third-largest carrier of international air cargo.Cathay Pacific was founded in Hong Kong in 1946. It has been deeply committed to its home baseover the past seven decades and remains so, making substantial investments to develop HongKong as one of the world’s leading international aviation centres.Cathay Pacific itself operated 152 passenger and cargo aircraft at 30th June 2020. The Group’sother investments include its catering, laundry, ground-handling and cargo terminal companies,and corporate headquarters at Hong Kong International Airport.Cathay Dragon, a regional full-service airline registered and based in Hong Kong, is a wholly ownedsubsidiary of Cathay Pacific operating 48 aircraft at 30th June 2020. HK Express, a low-cost airlinebased in Hong Kong offering scheduled services within Asia, is a wholly owned subsidiary ofCathay Pacific operating 24 aircraft at 30th June 2020. Air Hong Kong, an express all-cargo carrieroffering scheduled services in Asia, is a wholly owned subsidiary of Cathay Pacific operating 11aircraft at 30th June 2020. Cathay Pacific owns 18.13% of Air China Limited (“Air China”), thenational flag carrier and a leading provider of passenger, cargo and other airline-related services inthe Chinese mainland.At 30th June 2020, Cathay Pacific and its subsidiaries employed more than 33,000 peopleworldwide, of whom around 27,600 are employed in Hong Kong. Shares of Cathay Pacific arelisted on The Stock Exchange of Hong Kong Limited, as are the shares of its substantialshareholders Swire Pacific Limited (“Swire Pacific”) and Air China.Cathay Pacific is a founding member of the oneworld global alliance, whose combined networkserves more than 1,000 destinations worldwide. Cathay Dragon is an affiliate member of oneworld.Cathay Pacific Airways LimitedInterim Report 20201

FINANCIAL AND OPERATIONAL HIGHLIGHTSGroup Financial StatisticsResultsRevenue(Loss)/profit attributable to the shareholders of Cathay Pacific(Loss)/earnings per shareDividend per share(Loss)/profit marginFinancial positionFunds attributable to the shareholders of Cathay PacificNet borrowings*Shareholders’ funds per shareNet debt/equity ratio*HK millionHK millionHK centsHK %Cargo yieldCost per ATK (with fuel)Fuel consumption per million RTKFuel consumption per million ATKCost per ATK (without fuel)Underlying** cost per ATK (without fuel)ATK per HK ’000 staff costATK per staffAircraft utilisation (including parked aircraft)On-time performanceAverage age of fleet*2.5-38.2%pt93,0331.88-21.3%82,396 12.9%1.31 0.57 times202020198,59516,318-47.3%5,9588,635-31.0%Six months ended 30th .384.2-16.9%pt1.19 58.0%HK centsHK 19.0%-72.6%-76.0% 1.1%Million4,1295,477%69.363.4 5.9%ptHK 3.753.12 20.2%‘000 tonnesHK 6672.719791.88-24.6%-31.9% 44.1%Barrels1,8191,870HK 2.952.23 32.3%1,1581,805-35.8%5.412.010.310.2BarrelsHK Unit‘000Hours per % 34.1%-46.2%-55.0% 12.3%pt 0.1 yearNet borrowings and the net debt/equity ratio excluding leases without asset transfer components are HK 74,089 million and 1.50 respectively. Furtherdetails can be found in note 12 to the financial statements.** Underlying costs exclude exceptional items, impairment and related charges and are adjusted for the effect of foreign currency movements.2-21.3%27,732‘000Cargo load factor-285.0MillionRevenue passengers carriedCargo carried-100.0%16.0HK centsCargo revenue tonne kilometres (“RFTK”)(35.7)0.1812.6Passenger revenue per ASKCargo revenue per AFTK34.2–-48.3%-11,212HK TimesMillionPassenger yield(250.8)Change1,34762,773Available cargo tonne kilometres (“AFTK”)Passenger load factor53,547(9,865)49,371HK millionMillionRevenue passenger kilometres (“RPK”)27,669HK millionAvailable tonne kilometres (“ATK”)Revenue tonne kilometres (“RTK”)201930th June 31st DecemberOperating Statistics – Cathay Pacific and Cathay DragonAvailable seat kilometres (“ASK”)2020Six months ended 30th June

CHAIRMAN’S STATEMENTDespite a promising start in January, with encouraging signs that passenger demand was beginning to return followingthe social unrest which impacted the second half of 2019, the first six months of 2020 were the most challenging thatthe Cathay Pacific Group has faced in its more than 70-year history. The impact of COVID-19 on the Group’s businessand the global economy is unprecedented. The global health crisis has decimated the travel industry and the futureremains highly uncertain, with most analysts suggesting that it will take years to recover to pre-crisis levels.In response to this unprecedented situation, in June 2020 Cathay Pacific announced a HK 39 billion recapitalisation,comprising a HK 19.5 billion preference share issue (with attached warrants), a HK 11.7 billion rights issue and aHK 7.8 billion bridging loan facility. This recapitalisation was completed on 12 August 2020. On behalf of Cathay PacificGroup, I wish to extend our appreciation for the support provided by our shareholders and the Hong Kong SpecialAdministrative Region Government in participating in the recapitalisation issue which demonstrates the confidencethey have in the Group, and in our ability to continue to play a critical leadership role in the development of the HongKong aviation hub.The Cathay Pacific Group’s attributable loss was HK 9,865 million in the first half of 2020 (2019 first half: profit ofHK 1,347 million). Cathay Pacific and Cathay Dragon reported a loss after tax of HK 7,361 million in the first half of2020 (2019 first half: profit of HK 675 million), and the share of losses from subsidiaries and associates was HK 2,504million (2019 first half: profit of HK 672 million).The loss for the first half of 2020 is net of the receipt of HK 1,060 million of COVID-19 related government grantsglobally and includes impairment and related charges of HK 2,465 million relating to 16 aircraft that are unlikely tore-enter meaningful economic service again before they retire or are returned to lessors, and to certain airline servicesubsidiaries’ assets.Business performance of Cathay Pacificand Cathay DragonPassenger revenue decreased by 72.2% to HK 10,396million in the first half of 2020. RPK traffic decreased by72.6%. This loss of revenue reflects the precipitous drop into add capacity back as COVID-19 in Hong Kong stabilisedand restrictions on transit traffic were relaxed from thebeginning of the month. Overall, capacity was down 65.7%for the first six months of 2020 compared to the sameperiod in 2019.passenger demand resulting from the extensive travelCargo yield increased by 44.1% to HK 2.71 in the first sixwhich were implemented around the world in response tocapacity and demand in the cargo market, which led torestrictions, border controls and quarantine arrangementsthe COVID-19 pandemic. In total, we carried 4.4 millionpassengers in the first six months of the year, 76.0% fewerthan in 2019. The load factor also dropped significantly, to67.3% from 84.2% in the first half of 2019. In April and Maywe were carrying an average of only around 500 passengersa day.We introduced substantial ASK capacity reductions in thefirst six months of 2020, amounting to 29% in February,73% in March, and 97% in April and May. In June, we beganmonths of the year. There was an imbalance betweenhigher cargo revenues compared to the first half of 2019.Cargo revenue in the first half of 2020 was HK 11,177million, an increase of 8.8% compared to the same period in2019. AFTK capacity decreased by 31.0%, reflecting theconsiderable loss of available capacity as a result of theextensive cuts to our passenger schedule. Typically,approximately half of our cargo is carried in the bellies of ourpassenger aircraft. As a result, overall tonnage carrieddecreased by 31.9% to 667 thousand tonnes. The loadfactor increased 5.9 percentage points to 69.3%.Cathay Pacific Airways LimitedInterim Report 20203

CH AI R M AN ’ S ST A T E M E NTWe introduced additional cargo-carrying capacity whereverpossible. We increased the utilisation of our freighters. Wechartered flights from our all-cargo subsidiary Air HongKong. We operated 2,228 pairs of cargo-only passengerflights between March and June. At the end of April, westarted to carry cargo in the passenger cabins of Boeing777-300ER aircraft. This increased their cargo-carryingcapacity by 5-9%.Total fuel costs for Cathay Pacific and Cathay Dragon(before the effect of fuel hedging) decreased by HK 9,069million (or 62.8%) compared with the first half of 2019,The contribution from our subsidiaries was generally weaker.This was partly due to an impairment of the asset carryingvalues of Vogue Laundry Service and Cathay PacificCatering Services.HK Express reported a significant loss for the first half of2020. It stopped flying in mid-March because of COVID-19and associated travel restrictions, and has only recentlyreintroduced some flights.reflecting a 22.4% decrease in average into-plane fuelAir Hong Kong recorded a profit during the first six monthsof the substantial decrease in fuel prices were limitedbetween capacity and demand in the cargo market. The Airprices and a 51.8% decrease in consumption. The benefits(because the airlines flew much less) and were offset bylosses on fixed volume fuel hedges. After taking fuelhedging into account, fuel costs decreased by HK 7,640million (or 52.6%) compared with the first half of 2019. Fuelconsumption per available tonne kilometre fell by 8.5%.Disregarding the effect of foreign currency movements andexceptional items (including impairments), there was a34.1% increase in non-fuel costs per available tonnekilometre to HK 2.99, reflecting the effect of reducingcapacity when some costs are fixed or semi-variable. Weimplemented numerous cash-preservation measures.These included significant capacity reductions, executivepay cuts, two voluntary special leave schemes (with anuptake of 80% and 90% respectively), suspension ofprojects and non-essential expenditure, concessions fromsuppliers and deferral of payments to them, and closure ofoutport crew bases. We reached agreement with Airbus todefer delivery of our A350-900’s and A350-1000’s from2020 and 2021 to 2020-2023, and of our A321neo’s from2020-2023 to 2020-2025. Advanced negotiations aretaking place with Boeing for the deferral of B777-9deliveries. This deferral of deliveries is expected to producecash savings to the Cathay Pacific Group in the short tomedium term.4Business performance of othersubsidiaries and associatesof the year. As noted above, there was an imbalanceHong Kong aircraft provided additional cargo capacity forthe Group.The Group’s share of the results of Air China (in which theCathay Pacific Group had an 18.13% interest at 30th June2020) is based on its financial statements drawn up threemonths in arrear. Consequently the 2020 interim resultsinclude Air China’s results for the six months ended 31stMarch 2020, adjusted for any significant events ortransactions for the period from 1st April 2020 to 30th June2020. The results do not reflect the impact of COVID-19 onAir China from 1st April 2020 to 30th June 2020. Air China’sfinancial results declined in the six months to 31st March2020.In the first half of 2020, Air China Cargo’s profit was higherthan in the first half of 2019.

ProspectsThe International Air Transport Association (IATA) hasreleased analysis indicating that the COVID-19 crisis will seeglobal airline passenger revenues drop by US 371 billion in2020, a 61% decline compared to 2019, and estimatesairline industry net losses to be US 84 billion. Airlines in AsiaPacific will see the largest share of losses (US 29 billion)and will experience a 54% fall in passenger demand year-on-year. Most industry analysts are forecasting very gradualrecoveries over a protracted period, and IATA is forecastingthat it will be 2024 at the earliest before internationalpassenger demand returns to pre-crisis levels. Not only that,but with a global recession looming, and geopoliticaltensions intensifying, trade will likely come under significantpressure, and this is expected to have a negative impact onboth air travel and cargo demand. This is the biggestchallenge to the aviation industry that Cathay Pacific hasever witnessed. We do not expect to see a meaningfulrecovery in our passenger business for some time to come.We will continue to closely monitor market demand as wework towards progressively reintroducing passenger flightsas appropriate.By the fourth quarter of 2020, Cathay Pacific’s managementwill recommend to the Board the optimum size and shape ofthe Cathay Pacific Group to meet the air travel needs ofHong Kong while meeting its responsibilities to itsshareholders. Inevitably this will involve rationalisation offuture planned capacity compared to pre-crisis plans, takinginto account the market outlook and cost structure atthat time.Patrick HealyChairmanHong Kong, 12th August 2020Cathay Pacific Airways LimitedInterim Report 20205

REVIEW OF OPERATIONSDespite a promising start in January, with encouraging signs that passenger demand was beginning to return followingthe social unrest which impacted the second half of 2019, the first six months of 2020 were the most challenging thatthe Cathay Pacific Group has faced in its more than 70-year history. The impact of COVID-19 on the Group’s businessand the global economy is unprecedented. The global health crisis has decimated the travel industry and the futureremains highly uncertain, with most analysts suggesting that it will take years to recover to pre-crisis levels.Cathay Pacific’s management team has been active and agile in responding to the extremely difficult environment. Weimplemented numerous cash-preservation measures. These included significant capacity reductions, executive paycuts, two voluntary special leave schemes (with an uptake of 80% and 90% respectively), suspension of projects andnon-essential expenditure, concessions from suppliers and deferral of payments to them, and closure of outport crewbases. We reached agreement with Airbus to defer delivery of our A350-900’s and A350-1000’s from 2020 and 2021 to2020-2023, and of our A321neo’s from 2020-2023 to 2020-2025. Advanced negotiations are taking place with Boeingfor the deferral of B777-9 deliveries. This deferral of deliveries is expected to produce cash savings to the CathayPacific Group in the short to medium term. Despite all these measures, the drop in passenger revenue to around only1% of prior year levels meant that Cathay Pacific was initially losing cash at the operating level at a rate of HK 2.5billion to HK 3.0 billion per month as it serviced a high level of customer refunds. This has subsequently reduced and isexpected to remain at a rate of approximately HK 1.5 billion per month whilst minimal passenger services are in place.Passenger servicesPassenger revenue decreased by 72.2% to HK 10,396 million in the first half of 2020. RPK traffic decreased by 72.6%. This lossof revenue reflects the precipitous drop in passenger demand resulting from the extensive travel restrictions, border controlsand quarantine arrangements which were implemented around the world in response to the COVID-19 pandemic. In total, wecarried 4.4 million passengers in the first six months of the year, 76.0% fewer than in 2019. The load factor also droppedsignificantly, to 67.3% from 84.2% in the first half of 2019. In April and May we were carrying an average of only around 500passengers a day.We introduced substantial ASK capacity reductions in the first six months of 2020, amounting to 29% in February, 73% in March,and 97% in April and May. In June, we began to add capacity back as COVID-19 in Hong Kong stabilised and restrictions ontransit traffic were relaxed from the beginning of the month. Overall, capacity was down 65.7% for the first six months of 2020compared to the same period in 2019.Available seat kilometres (“ASK”), load factor and yield change by region for Cathay Pacific and Cathay Dragon passengerservices for the first half of 2020 were as follows:Americas7,640Southwest Pacific4,386EuropeNorth AsiaSoutheast AsiaSouth Asia, Middle East and AfricaOverall620205,545ASK (million)2019Load factor 8.4%pt-14.8%pt-20.4%pt-19.8%pt-16.9%ptYieldChange 7.3% 1.3% 6.1% 1.5% 8.0%-1.3% 1.1%

Innovation To provide customers with greater reassurance whenplanning their travel, we introduced a number of newflexible booking arrangements. This includes CathayCredits, a system for trading in tickets for credits of equalvalue that can be redeemed for future bookings. We alsointroduced unlimited free rebookings, reroutings orrefunds for passengers depending on their booking andtravel dates (subject to applicable terms and conditions). We launched the Whatsapp enquiry channel in selectmarkets that allows customers to receive quick andeffective solutions to their queries in a single chat.Awards In January 2020, Cathay Pacific and Cathay Dragonservice teams and individual staff members wonhonours at the Hong Kong Customer Service ExcellenceAwards 2019. In February 2020, Cathay Dragon won Best First ClassSparkling and Cathay Pacific was runner-up in the BestFirst Class Cellar category at the Cellars in the Sky2019 Awards.Home market – Hong Kong and Greater BayArea In the first three weeks of January, we saw a smallamount of growth in outbound Hong Kong passengers,largely due to the early start of the Chinese New Yearholiday. Outbound travel dropped significantly after theholiday period. From late February, a modified service was introduced inour lounges to have food individually served or portionedas a precautionary health and safety measure. On 17th February, we temporarily closed The Bridge, TheDeck and The Pier First Class Lounges at Hong KongInternational Airport until further notice. On 26th March,The Pier Business Class Lounge was also temporarilyclosed until further notice. As of 1st April, all lounges across our network have beentemporarily closed until further notice, with the exceptionof The Wing at Hong Kong International Airport and theCathay Pacific Lounge at Shanghai Pudong InternationalAirport. A modified inflight service was introduced on all flights tostrengthen health and safety protocols. As of 10th April, the In-Town Check-in service at HongKong and Kowloon Airport Express Stations has beensuspended.Americas To cater to a temporary increase in demand, we addedcapacity on flights to Hong Kong from Los Angeles,Seattle and San Francisco, and reinstated two flights toHong Kong from New York (JFK) and Boston between16th and 28th March. From April until late June, Cathay Pacific’s Los Angelesand Vancouver flights were reduced to twice per week. Allother flights serving the Americas were temporarilysuspended during this time. In late June, Cathay Pacific reinstated three weekly flightsto San Francisco and New York (JFK), and increasedflights to Los Angeles and Vancouver to five times perweek. All other flights serving the Americas remainedtemporarily suspended.Europe To cater to a temporary increase in demand, wereinstated nine flights from London (Heathrow) and twofrom Manchester to Hong Kong between 17th and21st March. From April until late June, Cathay Pacific’s London(Heathrow) flights were reduced to twice per week. Allother flights serving Europe were temporarily suspendedduring this time. In late June, Cathay Pacific reinstated two weekly flightsto Amsterdam, and increased flights to London(Heathrow) to five times per week. All other flights servingEurope remained temporarily suspended.Cathay Pacific Airways LimitedInterim Report 20207

REV I E W O F O P E RA T I O NSSouthwest PacificSouth Asia, Middle East and Africa From April until mid-to-late June, Cathay Pacific’s Sydney From April, all flights serving South Asia, Middle Eastflights were reduced to twice per week. All other flightsserving the Southwest Pacific were temporarilysuspended during this time. In mid-to-late June, Cathay Pacific reinstated two weeklyfurther notice.Loyalty and reward programmesflights to Melbourne and increased flights to Sydney toMarco Polo ClubSouthwest Pacific remained temporarily suspended. The Marco Polo Club loyalty programme providesfour times per week. All other flights serving theNorth Asiabenefits and services to the frequent flyers of CathayPacific and Cathay Dragon. On 24th January, Cathay Dragon temporarily suspended Marco Polo Club members contribute to about a quarterFebruary and March, Cathay Pacific and Cathay Dragon Club points are earned by reference to airline, cabin, fareflights to and from Wuhan until further notice. Throughoutprogressively reduced passenger capacity on flights toand from the Chinese mainland by about 90%. From April until late June, Cathay Pacific’s Tokyo (Narita)and Taipei flights, and Cathay Dragon’s Beijing andShanghai (Pudong) flights were reduced to three timesper week. All other flights serving North Asia weretemporarily suspended during this time. In late June, Cathay Pacific increased flights to Taipei tofour times per week. Flight frequency to Tokyo (Narita),Beijing and Shanghai (Pudong) remained at three timesper week. All other flights serving North Asia remainedtemporarily suspended.Southeast Asia From April until late June, Cathay Pacific’s Bangkok,Jakarta, Manila and Singapore flights, and CathayDragon’s Kuala Lumpur flights, were reduced to threetimes per week, and Cathay Pacific’s Ho Chi Minh Cityflights were reduced to twice per week (increased to threetimes per week in May). All other flights serving SoutheastAsia were temporarily suspended during this time. In late June, Cathay Pacific increased flights to Manila toonce per day, and to Bangkok to five times per week.Flight frequency to Jakarta, Ho Chi Minh City, Singaporeand Kuala Lumpur remained at three times per week.All other flights serving Southeast Asia remainedtemporarily suspended.8and Africa have been temporarily suspended untilof the revenues of Cathay Pacific and Cathay Dragon.class and distance travelled. Silver members (and above) have unlimited access tolounges when flying on Cathay Pacific or Cathay Dragon.All members are entitled to priority boarding and check-in.Asia Miles Asia Miles is a leading travel and lifestyle rewardsprogramme in Asia. It has more than 12 million membersand over 800 partners worldwide, including 26 airlines,more than 150 hotel brands and over 400 dining partnersand shops. There was a 63% decrease in redemptions by Asia Milesmembers on Cathay Pacific and Cathay Dragon flights inthe first half of 2020 compared to the same period oflast year. Marco Polo Club members are also members ofAsia Miles.

Cargo servicesCargo yield increased by 44.1% to HK 2.71 in the first six months of the year. There was an imbalance between capacity anddemand in the cargo market, which led to higher cargo revenues compared to the first half of 2019. Cargo revenue in the firsthalf of 2020 was HK 11,177 million, an increase of 8.8% compared to the same period in 2019. AFTK capacity decreased by31.0%, reflecting the considerable loss of available capacity as a result of the extensive cuts to our passenger schedule.Typically, approximately half of our cargo is carried in the bellies of our passenger aircraft. As a result, overall tonnage carrieddecreased by 31.9% to 667 thousand tonnes. The load factor increased 5.9 percentage points to 69.3%.We introduced additional cargo-carrying capacity wherever possible. We increased the utilisation of our freighters. We charteredflights from our all-cargo subsidiary Air Hong Kong. We operated 2,228 pairs of cargo-only passenger flights between March andJune. At the end of April, we started to carry cargo in the passenger cabins of Boeing 777-300ER aircraft. This increased theircargo-carrying capacity by 5-9%.Available cargo tonne kilometres (“AFTK”), load factor and yield change for the first half of 2020 were as follows:Cathay Pacific and Cathay Dragon2020AFTK (million)5,95820198,635Change-31.0%202069.3Load factor (%)201963.4YieldChangeChange 5.9%pt 44.1% Demand was strong in the first three weeks of January, On 23rd April, Cathay Pacific began operating flights within the Chinese mainland during the Chinese New Yearfirst time after obtaining special approval from the Hongbut dropped significantly as manufacturing came to a haltholiday. The delayed resumption of manufacturingsignificantly affected our Hong Kong and Chinesemainland markets, with outbound demand only beginningto recover by mid-February. In February, we saw an overflow of demand for cargoservices into the Chinese mainland and Hong Kong, inparticular for pharmaceutical-related orders involvingmedical equipment such as face masks and coverings,hand sanitiser and personal protective equipment. In March, exports from Hong Kong and the Chinesemainland rebounded as production resumed; however,other trans-shipments were negatively impacted bylockdowns around the world, in particular on the Indiasub-continent. Demand for medical equipment and pharmaceuticalsremained high from March onwards, while the volume ofconsumer goods such as garments and automobileparts declined. In April, overall tonnage dropped by a third compared toMarch as our passenger network further contracted.Lockdown measures around the world also hindered themovement of certain cargo such as perishables, seafood,live animals, industrial parts and equipment.cargo securely carried in the passenger cabins for theKong Civil Aviation Department to do so aboard ourBoeing 777-300ER passenger aircraft. This enables theaircraft to carry about seven tonnes of incrementalweight, increasing cargo-carrying capacity by 5-9% oneach aircraft. In May, significant effort was made to prioritise capacityfor routings with the highest airfreight demand, mostnotably to the Americas, Australia and Europe. To meet increased airfreight demand amid the globalreduction in available cargo capacity, we sourcedadditional capacity from our subsidiary Air Hong Kong andmounted additional freighter services. We also operated atotal of 2,243 pairs of cargo-only passenger flightsthroughout the first half of the year. As of 30th June 2020,a regular schedule of cargo-only passenger flights to 51major destinations had been reinstated. In June, Cathay Pacific continued to operate a fullfreighter schedule as well as chartered flights from AirHong Kong, though there were fewer cargo-onlypassenger flights compared with May. Cargo tonnage fellslightly month-on-month as demand for medical supplieswaned following a peak month in May, and yields camedown following the significant rise seen that month.Cathay Pacific Airways LimitedInterim Report 20209

REV I E W O F O P E RA T I O NSFleet development Given current conditions we have decided to transferapproximately a third of our passenger aircraft to parking At 30th June 2020, Cathay Pacific operated 152 aircraft,locations outside of Hong Kong over the coming monthsCathay Dragon operated 48 aircraft, HK Express operatedin keeping with prudent operational and asset24 aircraft, and Air Hong Kong operated 11 aircraft (a totalmanagement considerations. This is subject to change asof 235 aircraft).we continue to reassess our passenger flight capacity.Fleet profile*Number at 30th June 2020Leased**Aircraft 1012812.7A350-100093121.6Aircraft operated by Cathay 3510.3A320-200neo5A321-200neoAircraft operated by Air Hong Kong***:A330-243FTotalGrand total*1114421179511115.812A320-200Aircraft operated by HK Express:48‘25 Expiry of operating leases**‘22 andbeyond3.13Aircraft operated by Cathay 137.116.1146141615433716117230The table does not reflect aircraft movements after 30th June 2020.** Leases previously classified as operating leases are accounted for in a si

Investor relations For further information about Cathay Pacific Airways Limited, please contact: Corporate Affairs Department Cathay Pacific Airways Limited 9th Floor, Central Tower Cathay Pacific City Hong Kong International Airport Hong Kong Email: ir@cathaypacific.com Cathay Pacific's main internet address is www.cathaypacific.com

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