Cathay Pacific forecasts a 76% profit increase, driven by strong cargo and passenger demand, alongside improved HK Express results.
Hong Kong's Cathay Pacific Airways announced that its first half profit may rise as much as 76 per cent from a year earlier, driven by strong passenger and cargo demand, improved results at HK Express, and higher contributions from associates, reported Reuters.
The airline forecasts a profit of HK$6 billion to HK$6.5 billion for the six months ended June 30, up from HK$3.7 billion (US$4.7 million) a year earlier. The results include a one-time gain of HK$1.4 billion from the dilution of its stake in Air China.
Excluding the one-off gain, Cathay stated that its underlying performance was supported by solid demand across both passenger and cargo operations. This announcement comes as the aviation industry faces a fuel cost shock, with IATA forecasting airlines' fuel bills to reach US$350 billion this year, up from US$252 billion in 2025.
Shares of the Hong Kong-listed carrier rose more than 3 per cent in afternoon trading, surpassing forecasts from HSBC, which had expected a profit of HK$5.1 billion. Cathay Cargo carried 9 per cent more cargo in June, with first half tonnage also up 9 per cent.
Chief Customer and Commercial Officer Ms. Lavinia Lau noted that semiconductor and pharmaceutical shipments were key growth drivers, supporting the Cathay Expert and Cathay Pharma product lines. She also highlighted potential risks to e-commerce flows due to new European customs duties.
Passenger traffic also experienced growth, with Cathay carrying 12 per cent more passengers in June and 17 per cent more in the first half. Load factors remained firm despite June being a softer month, aided by rerouted traffic through Hong Kong amid the Middle East conflict. Premium cabins continued to show strength due to corporate and leisure demand.
Ms. Lau expressed that the summer outlook is encouraging, particularly for long-haul routes. However, HK Express saw passenger numbers fall by 4 per cent in June after trimming capacity to offset fuel costs, although July bookings are ahead of last year.