Hong Kong’s flagship airline has recorded a significant rise in net profit, attributing the growth to strong passenger demand and a one-time gain from its Air China stake
Cathay Pacific reports strongest first-half profit in 16 years
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Cathay Pacific Airways has announced its most profitable first half since 2010, buoyed by robust passenger and cargo demand. The Hong Kong flagship carrier reported a 71 percent surge in net profit, reaching HK$6.24 billion for the six months ending 30 June, according to Reuters.
This figure marks the second-highest result in Cathay Pacific’s history for this period, comfortably aligning with previous guidance which anticipated a profit between HK$6 billion and HK$6.5 billion.
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Revenue climbed 25.3 percent to HK$68 billion, while the profit margin expanded to 9.2 percent from the 6.7 percent recorded in the previous corresponding period. According to Cathay Pacific, these results were supported by strong operational activity alongside a one-time financial gain derived from its stake in Air China.
Cathay Pacific: overcoming headwinds
The performance was achieved despite a challenging cost environment driven by rising jet fuel prices linked to the conflict in Iran.
The International Air Transport Association forecasts that jet fuel prices will average US$152 per barrel this year, a figure approximately 70 percent higher than 2025 levels. Cathay noted that its own fuel costs nearly doubled in the second quarter compared to the first, though this was partly mitigated by fuel surcharges.
Cathay Pacific chairman Guy Bradley expressed a cautiously optimistic outlook for the remainder of the year. While noting that the airline remains vigilant regarding market volatility and geopolitical developments, Bradley highlighted that summer travel demand entering the third quarter remains strong.
