Cathay forecasts up to $6.5b profit for H1 2026

Passenger and cargo volumes increased in June, although elevated fuel prices continued to weigh on operations.

Cathay Group expects to record an attributable profit of between $6b and $6.5b for the first half of 2026, up from $3.7b in the same period last year.

The forecast includes a $1.4b gain arising from the dilution of the group’s equity interest in Air China.

Cathay attributed the expected improvement to continued demand for Cathay Pacific and Cathay Cargo, better performance from HK Express and stronger contributions from associates.

Cathay Pacific and HK Express carried a combined total of more than 3.1 million passengers in June, representing a 9% YoY increase.

Cathay Pacific carried 2.58 million passengers, up 12.3%, whilst capacity rose 6%. Its passenger load factor increased by 1.8 percentage points to 87.4%.

The airline said traffic through Hong Kong increased amid the Middle East situation. Demand was also supported by the Dragon Boat Festival holiday, inbound student travel and corporate and premium leisure passengers.

In the first half, Cathay Pacific’s passenger numbers rose 17.5% from the same period in 2025.

Cathay Cargo handled approximately 144,800 tonnes in June, up 9.3%, whilst cargo capacity increased 1.3%. Its load factor rose 1.9 percentage points to 60.4%.

Cargo growth was supported by shipments from mainland China to Southeast Asia, as well as demand for semiconductor and pharmaceutical transportation. First-half cargo tonnage increased 8.5%.

Meanwhile, HK Express carried about 560,500 passengers in June, down 3.8%, as capacity fell 7.4%. The carrier had consolidated some flights to mitigate higher fuel costs.

Despite the decline in passenger numbers, HK Express’s load factor increased by 5 percentage points to 75.5%. Its first-half passenger traffic rose 9.8%.

Cathay said its first-half profit forecast is based on a preliminary review of unaudited management accounts. The group expects to publish its interim results in August.