Cathay Pacific Airways (0293) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved third consecutive year of solid financial performance, with attributable profit rising to HK$10.8bn in 2025, up 9.5% year-over-year, driven by increased capacity, strong passenger load factors, and resilient cargo demand.

• Revenue increased by 11.9% to HK$116.8bn compared to 2024, supported by robust passenger and cargo demand.

• Completed a HK$7bn share buy-back from Qatar Airways in February 2026, reducing issued shares by 9.56% and enhancing EPS.

• Passenger capacity is projected to grow 10% year-on-year for 2026, driven by new aircraft deliveries and continued monthly growth through 2025.

• Celebrated 80th anniversary, expanding network to over 100 destinations and growing workforce to 33,000.

Financial highlights

• Group attributable profit: HK$10.8bn (up from HK$9.9bn in 2024); profit margin slightly decreased to 9.3%.

• Revenue: HK$116.8bn (up 11.9% year-over-year).

• Dividend per share increased 21.7% to HK$0.84; total dividend distribution for 2025 was HK$5,228 million.

• Available unrestricted liquidity: HK$25.4bn at year-end 2025, up 33.4%.

• Net borrowings fell 19.2% to HK$46,812 million; net financing charges rose to HK$3.1bn.

Outlook and guidance

• Passenger capacity expected to grow by around 10% in 2026, with new destinations and increased frequencies.

• Cargo capacity to increase through passenger belly growth and new A350F freighters; six firm orders placed.

• Eight new narrowbody aircraft to be delivered in 2026; continued investment in premium products and lounges.

• 30% of fuel for 2026 is hedged, but only the crude oil component, not the crack spread.

• Ongoing focus on agility to navigate geopolitical volatility, supply chain disruptions, and cost inflation.