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.

• Completed the financial rebuild phase post-pandemic, repaying government preference shares, warrants, and a large portion of convertible bonds, returning to full private ownership.

• Announced over HK$100 billion in investments, including more than 100 new aircraft, major infrastructure upgrades, and 11 new destinations for 2025.

Financial highlights

• Net profit of HK$9.9 billion in 2024, with return on capital employed improving to 11.6% and exceeding weighted average cost of capital for two years.

• Revenue increased 10.5% year-over-year to HK$104,371 million; passenger revenue up 11.6%, cargo up 8.3%.

• Cash generated from operations totaled HK$24.7 billion; available unrestricted liquidity at year-end was HK$19.1 billion.

• Dividend per ordinary share was HK$0.69 for 2024, the highest since 2010, representing about 50% of distributable profit.

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

Outlook and guidance

• Yield normalization expected to continue in 2025, with regional yields normalized and long-haul fares down 10–20% year-over-year.

• Over 100 destinations to be served in 2025, with 11 new destinations announced; leveraging the Three-Runway System for network expansion.

• Capacity growth planned, but supply chain and aircraft delivery delays may constrain expansion; flexibility in fleet management to mitigate impacts.

• Cargo outlook remains uncertain due to global trade dynamics and regulatory changes; monitoring US tariff impacts.

• Continued investment in premium travel experience, new aircraft, lounge upgrades, and sustainability initiatives.