HONG KONG – Cathay Pacific Airways announced on Friday that it had bought back all warrants issued to the Hong Kong government as part of its recapitalization during the COVID-19 pandemic.

While the buyback was for HK$1.53 billion ($196.2 million), the airline also paid total HK$2.44 billion in preference share dividends to the special administrative region government over its holding period.

“Together with the warrants buyback, this represents a payment of nearly HK$4 billion to the HKSAR government,” the Hong Kong flag carrier said in a statement on Friday.

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This marks another step in repaying the government for a pandemic-related recapitalization package.

At the end of July, the company carried out a buyback of the last part of HK$19.5 billion in preference shares issued to the government as part of the HK$39 billion rescue package in June 2020.

The 2020 recapitalization was essential for the company to ensure it sustained its operations amid the industry downturn caused by the global pandemic.

“Completing the buyback of the preference shares and the warrants marks the close of a significant chapter in Cathay’s history. Now, we are firmly focused on the future in pursuing our vision of becoming one of the world’s greatest service brands,” Cathay Group Chief Executive Officer Ronald Lam said, thanking the SAR government and the shareholders for their support during the pandemic.

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Referring to Cathay’s announcement of more than HK$100 billion in investments over the next seven years, he said, “These substantial investments will further elevate the experience we provide to our customers and strengthen Hong Kong’s international aviation hub status with the opening of the three-runway system.”

Cathay is expanding and modernizing its fleet with more than 100 new-generation narrowbody, regional widebody, long-haul widebody and large freighter aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft, he added.

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During the COVID-19 pandemic, the airline made heavy losses and layoffs. In March, the company reported its first annual profit in four years and paid its first dividend since 2019. It reported a 15 percent drop in interim profit in August, mainly due to lower air fares.

With Reuters inputs