Cathay Pacific Airways (0293) H2 2024 earnings summary

Executive summary

• Achieved a second consecutive year of strong profitability, with attributable profit of HK$9.9 billion in 2024, slightly above 2023's HK$9.8 billion.

• Revenue reached HK$104.4 billion, up 10.5% year-over-year, surpassing HK$100 billion for the first time since 2019.

• Significant improvements in employee and customer sentiment, with Team NPS rising from -15 in 2023 to +41.6 in 2024 and Customer NPS exceeding +27.

• Announced over HK$100 billion in investments, including more than 100 new aircraft and major infrastructure upgrades.

• Fully repaid government preference shares and warrants, marking a return to full private ownership.

Financial highlights

• Operating cash flow reached HK$24.7 billion in 2024.

• Available unrestricted liquidity at year-end was HK$19.1 billion, returning to pre-pandemic levels.

• Net borrowings rose to HK$57.9 billion; net debt/equity ratio increased to 1.10.

• Underlying unit costs (excluding fuel) fell by 4.5% year-over-year to HK$2.36 per ATK.

• Return on capital employed improved to 11.6%, surpassing the weighted average cost of capital.

Outlook and guidance

• Yield normalization is expected to continue in 2025, with regional yields normalized and long-haul yields declining 10–20% in 2024.

• Over 100 destinations planned for 2025, with further aircraft deliveries and network expansion leveraging the Three-Runway System.

• Supply chain and aircraft delivery challenges persist, but flexibility in fleet management is expected to mitigate major impacts.

• Cargo outlook remains uncertain due to global trade policy changes and ongoing supply chain issues.

• Ongoing investment in fleet renewal and customer experience, targeting net-zero carbon emissions by 2050.