Cathay Pacific sees significant profit rise in first half of 2023

Cathay Pacific Group has recorded an attributable profit of HK$4.26bn in the first half of 2023 when compared to the loss of HK$4.99bn a year ago, marking the group's first half-year profit since 2020.  

The Cathay Group includes Cathay Pacific, HK Express and cargo airline AHK Air Hong Kong, as well as associate interests in Air China and Air China Cargo.

According to the results, in the first half of 2023, Cathay Pacific’s passenger revenue increased by 1,109.5% to HK$25,013m compared with the same period in 2022. The airline carried a total of 7.8 million passengers in the first half of 2023, an average of 43,184 per day, which was 2,233.1% more than in the first half of 2022. 

Meanwhile, HK Express reported a profit of HK$333 million for the first half of 2023, a significant surge from the loss of HK$824 million in the first half of 2022. The airline benefitted from robust travel demand, especially for short-haul destinations in Asia, and in April it returned to pre-pandemic flight frequencies levels with more than 420 flights per week.

The group's airlines and subsidiaries, excluding exceptional items, also posted an attributable profit of HK$4.76bn in the first half of the year. Meanwhile, the results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$2.63bn. However, Cargo revenue in the first half of 2023 decreased by 11.6% to HK$10,741m compared with the same period in 2022, reflecting a weaker global market for air cargo.

On the other hand, as Cathay Pacific reverses the situation from loss to gain, it plans to buy back half of the preference shares before the end of 2023 and the remainder by the end of July 2024.

Patrick Healey, chairman of Cathay said in a press conference announcing Cathay's interim results on Wednesday, that these results represent a significant improvement and reflect the growing strength of our business.

Healey also said building back connectivity at the Hong Kong international aviation hub remains Cathay's primary focus. "We are on track to achieve our target of 70% pre-pandemic passenger flight capacity levels covering 80 destinations by the end of 2023, and we are confident of reaching 100% by the end of 2024," he said.

“While we still have more to do as we rebuild a better Cathay, we are on the right track. Our commitment to contributing to Hong Kong’s continued development remains resolute as we strive to achieve our vision of becoming one of the world’s greatest service brands," he added.

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