Cathay Pacific Airways (0293) H1 2026 earnings summary

Executive summary

• First half 2026 revenue reached HK$68.1 billion, up 25.3% year-over-year, marking a record high, driven by robust passenger and cargo demand.

• Consolidated profit attributable to shareholders rose to HK$6.2 billion, up 75.5% year-over-year, supported by strong premium and AI-related cargo segments.

• Interim dividend per share increased 30% to HK$0.26, with a major share buyback from Qatar Airways completed.

• Passenger load factor hit a record 87.5%, with premium cabins and network expansion contributing to performance.

• Cargo revenue rose 23.9% year-over-year, driven by AI infrastructure demand and improved yields.

Financial highlights

• Net operating cash inflow reached HK$13.7 billion, up from HK$11.2 billion last year.

• Fuel costs rose by 58.5% year-over-year, partially offset by a HK$9 billion hedging gain.

• Financing charges dropped 26% year-over-year, reflecting lower debt and interest rates.

• Liquidity stood at HK$23.6 billion at June-end, after major outflows for dividends and share buyback.

• Interim dividend per share increased by 30% year-over-year.

Outlook and guidance

• Cautiously optimistic for the second half, with strong summer bookings and robust underlying demand.

• Capacity growth for 2026 expected around 10%, with balanced regional and long-haul expansion.

• Jet fuel prices anticipated to remain high; hedging and surcharges to mitigate cost impact.

• Cargo demand expected to stay strong, especially from AI-related shipments, with additional capacity planned for peak season.

• Growth in 2027 may be constrained by aircraft delivery schedules.