Cathay Pacific Airways, Hong Kong’s flagship carrier, posted a net profit of HK$3.65 billion ($465 million) for the first half of 2025, a 1.1 percent increase from the same period last year. The rise was driven by increased passenger capacity and traffic volumes, resilient cargo operations, and lower fuel costs, according to its news conference on Wednesday.
Building on its first-half performance, the company declared an initial interim dividend of 20 Hong Kong cents per ordinary share, totaling HK$1.3 billion. This is the same per-share payout as the first interim dividend distributed last year.
Cathay Pacific announced that it will buy 14 additional Boeing 777-9 aircraft, bringing its overall order for the advanced wide-body jets to 35, a strategic move to strengthen Hong Kong’s position as a global aviation hub.
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Chairman Patrick Healy said that the company has embarked on a comprehensive fleet renewal and expansion, including orders for over 100 new aircraft.
Cathay Pacific — and its subsidiary HK Express, Hong Kong’s only low-cost carrier — have introduced or announced 19 new destinations for 2025, increasing their global network to over 100 passenger destinations, Healy said.
Cathay Group CEO Ronald Lam said that the company’s growth is built on a unique positioning — integrating into the country’s development while serving well as the hub connecting the domestic and global markets.
In recent months, travel demand for flights from Hong Kong to Japan dropped significantly because of earthquake rumors affecting Japan, which noticeably affected performance on the airline’s Japan routes, Lam said, adding that there has been a clear rebound in demand for Japanese flights this month.
Lam added that Cathay Pacific has been recruiting cabin crew from the Chinese mainland, with the number of mainland employees expected to exceed 4,000 by year-end.
Kenny Ng, a strategist at China Everbright Securities International, told China Daily that as Hong Kong’s aviation industry was recovering in the first half of the year, an increase has been seen in both Cathay Pacific’s passenger capacity and traffic volume. Although global fuel prices declined during this period, the company’s fuel consumption still rose because of the expansion of its aircraft fleet and flight routes, he added.
READ MORE: Cathay Pacific to recruit more people from Chinese mainland
Ng cautioned that since Cathay’s financial performance fell short of market expectations, its stock price is likely to come under considerable pressure in the short term.
The company’s stock price dropped 9.7 percent on Wednesday, closing at HK$10.85. Ryan Ip, vice-president of think tank Our Hong Kong Foundation and executive director of its Public Policy Institute, said that over the past six months, passenger traffic at the Hong Kong airport appears to have exceeded expectations, with preliminary figures showing a 16.5 percent year-on-year increase to 29.4 million passengers, outpacing global air travel growth.
Ip added that Hong Kong’s airlines have introduced targeted fare incentives such as promotional fares on some mainland routes and refreshed loyalty programs, with early indications suggesting that stakeholders appreciate the stability these moves are bringing to the market.
Contact the writer at mikegu@chinadailyhk.com
