(June 9): Embattled Hong Kong carrier Cathay Pacific Airways Ltd. and its two main shareholders Swire Pacific Ltd. and Air China Ltd. suspended trading of their shares on Tuesday, pending an announcement.
The move comes as Cathay contends with a slump in traffic brought on by the coronavirus outbreak and the travel restrictions that ensued. They’ve hit Cathay particularly badly as it has no domestic market to fall back on, whereas carriers in China for example are rebuilding capacity on flights within the mainland.
Prior to the pandemic, Cathay was already under enormous financial and political pressure as it found itself caught up in the Hong Kong anti-government protests, which affected traffic numbers and led to the exit of the company’s former chief executive officer. Cathay was criticized by both sides for its response to the demonstrations.
Air China has owned about 30% of Cathay for more than a decade, while Swire has a 45% stake. Qatar Airways has a 9.99% holding.
