Cathay Pacific Airways (0293) investor relations material

Executive summary

• Achieved third consecutive profitable first half, with attributable profit of HK$3.7bn, up 1.1% year-over-year, driven by strong passenger volumes, stable cargo, and lower fuel prices.

• Revenue rose 9.5% year-over-year to HK$54.3bn, with over 100 destinations served and 19 new routes launched or announced.

• Major fleet expansion underway, including exercising rights for 14 Boeing 777-9s and over HK$100bn committed to new aircraft and modernization.

• Continued investment in customer experience, new cabin products, lounge upgrades, and digitalization initiatives.

• Received major industry awards, including Skytrax Top 3 and ATW Cargo Carrier of the Year.

Financial highlights

• Revenue increased 9.5% year-over-year to HK$54.3bn; group attributable profit at HK$3.7bn; interim dividend of HK$0.20 per share declared.

• Earnings per share rose 8.2% to HK56.7 cents; profit margin declined to 6.7% from 7.3%.

• Available unrestricted liquidity increased 12.7% to HK$21.5bn; net borrowings decreased 2.8% to HK$56.3bn.

• Operating expenses grew 10.4% to HK$49.9bn, with staff costs up 20.7%.

• Cost per ATK (without fuel) decreased 0.9% to HK$2.30.

Outlook and guidance

• Passenger demand expected to remain robust, with continued network and frequency expansion and ongoing customer experience enhancements.

• Yields anticipated to normalize as capacity grows; cargo outlook uncertain due to tariffs and regulatory changes.

• Ongoing supply chain and aircraft production challenges persist post-COVID.

• Over HK$100bn committed to investments in fleet, products, and digital innovation.

• HK Express expected to return to profitability as new routes mature and efficiencies improve.