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Cathay Pacific Soars: Profit Skyrockets to Decade High
11 Mar
Summary
- Cathay Pacific's net income rose nearly 10% to HK$10.8 billion last year.
- The airline plans to increase passenger capacity by approximately 10% in the coming year.
- Despite industry turbulence, Cathay Pacific anticipates continued growth and network expansion.
Cathay Pacific Airways Ltd. reported its highest profit since 2010, with net income reaching HK$10.8 billion ($1.4 billion) last year, surpassing analyst expectations. Revenue also saw a significant increase, growing 12% to a record HK$116.8 billion.
The airline anticipates a bullish year ahead, planning to boost passenger capacity by approximately 10%. This expansion will involve adding more frequent flights and destinations to its network, supported by the planned delivery of eight new Airbus SE single-aisle jets.
This positive trajectory stands in contrast to the global aviation industry, which faces significant disruption from the Middle East conflict and soaring energy prices. Some carriers are responding with increased fares and contingency plans, including grounding aircraft.
Cathay Pacific's outgoing chairman highlighted the company's strong foundation, enabling resilience and adaptability in the face of market turbulence and volatile fuel prices. The CEO confirmed plans to increase fuel surcharges on passenger and cargo flights to offset rising jet fuel costs, though specific details remain pending.
The airline has observed a notable increase in demand for its long-haul flights, particularly to Europe, Australia, and the United States, leading to significant airfare price fluctuations. Analysts suggest Cathay Pacific is well-positioned to withstand industry disruptions due to its robust balance sheet, fuel hedging strategies, and network flexibility.
Additionally, Cathay Pacific declared a second interim dividend of 64 Hong Kong cents per share, with total ordinary share dividends for the 2025 earnings period amounting to HK$5.2 billion. However, its budget unit, HK Express, saw its losses widen to HK$996 million.
