Cathay Pacific posts 15% lower profit; commits $100b to enhance services

The investment includes the purchase of 30 Airbus A330-900 aircraft.

The Cathay Pacific Group, including its airlines, subsidiaries and associates, recorded a profit of $3.61b in the first six months of 2024. This is 15% lower compared to $4.36b it earned in H1 2023. 

In its interim report, the group cited normalisation of ticket prices as the reason for the lower profits.

Cathay Pacific carried a total of 10.7 million passengers in H1, 36.4% higher since 2023.  

In contrast, the group’s budget carrier Hong Kong Express widened its loss to $77m, versus a profit of $333m in H1 2023. The grounding of its Airbus A320neo due to engine issues alongside normalisation of yields led to the loss, Cathay said.

Its cargo airlines Air Hong Kong had a profit of $411m for H1, a 2% increase compared to H1 2023. The group attributed its subsidiaries and associates’ improvement to enhancements in Air China’s yield level management and cost control.  

The group declared basic earnings per share of HK$0.52, 14% lower than last year’s $0.61.

Alongside its financial results, Cathay Group announced that it would invest over $100b in fleet, cabin products, airport lounges, and more over the next seven years to “strengthen Hong Kong’s international aviation hub status riding on the Three-Runway System.”

The investment includes the purchase of 30 Airbus A330-900 aircraft with the right to acquire an additional 30 aircraft in the future. These aircraft are expected to be delivered from 2028 and will join the group’s fleet flying in Asia.