Cathay H1 profit jumps 71% to $6.2b despite fuel cost surge

Revenue rose 25.3% to $68.06b during the period.

The Cathay Group reported profit of $6.2b for the first half (H1) of 2026, up 71% from $3.7b a year earlier.

Revenue rose 25.3% to $68.06b, whilst recurring underlying profit increased 44.9% to $5.29b.

The group declared a first interim dividend of $0.26 per ordinary share, 30% higher than a year earlier. The payout totals $1.58b.

The H1 profit included $1b in non-recurring gains, mainly from a non-cash deemed partial disposal gain of about $1.4b following the dilution of the group's equity interest in Air China Limited.

Guy Bradley, Group Chair of Cathay Group, said the result reflected continued demand for Cathay Pacific and Cathay Cargo, a stronger performance at HK Express, and higher contributions from associates.

Cathay's airlines and subsidiaries posted an attributable profit of $4.88b, compared with $3.83b in the same period last year. 

Associates contributed $410m, reversing a $181m loss. Their results are mostly recognised three months in arrears.

However, Bradley said the Middle East situation led to jet fuel costs almost doubling from the first quarter to the second quarter.

For the full first half, fuel expense, including hedging gains and losses, rose 58.5% to $23.22b. Fuel costs increased because of a 53.2% rise in the average fuel price and a 9% increase in consumption.

The group has invested approximately $150b in its fleet, cabin products, lounges, and digital innovation.

Subject to favourable market conditions, it targets adding 150 new aircraft over the next decade and expanding its network to 150 destinations.