Hong Kong’s Cathay Pacific Airways Ltd. said on Monday that it expected to resume burning cash because of stricter crew quarantine measures after flagging a surprise profit in the second half of 2021 due to cost cuts and a strong cargo market. The airline forecast it would post an annual loss of HK$5.6 billion ($719 million) to HK$6.1 billion ($784 million) for 2021, well below the average HK$10.2 billion ($1.31 billion) estimate from 12 analysts polled by Refinitiv and its HK$21.65 billion ($2.78 billion) loss in 2020. The full-year forecast was also narrower than the first-half loss of HK$7.57 billion ($972 million), with Cathay pointing to positive cashflow generation in the second half. However, the airline forecast it would burn through HK$1 billion ($128 million) to HK$1.5 billion ($192.6 million) of cash a month starting in February after the government tightened crew quarantine restrictions, forcing the airline to cut cargo …
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