Cathay pumps HK$100bn to bolster HK's global aviation hub status

The Cathay Group (Cathay) has pumped more than HK$100 billion to further elevate its customer experience, and strengthen Hong Kong’s international aviation hub status riding on the Three-Runway System for the next seven years. 

This encompasses major investments in its fleet, cabin products, lounges, and digital and sustainability leadership as it sets its sights on growing for its customers and its home city Hong Kong.  

Cathay Group chair Patrick Healy said: “With the Three-Runway System soon to propel Hong Kong’s aviation sector into a new age, the coming years are going to be an incredibly exciting time for Hong Kong and for Cathay with ample new opportunities to grow.” 

“As the city’s home airline, we are a key contributor towards the future success of the Hong Kong international aviation hub. Our substantial investments further demonstrate our unwavering commitment to fostering Hong Kong’s ongoing economic development,” he added. 

With over HK$100 billion being invested in its fleet, cabin products, airport lounges and more, Cathay is firmly turning the page and embarking on a bold new strategy for the future, not just in scope but also in quality, he added. “Cathay is entering an exciting new era underpinned by our determination to become one of the world’s greatest service brands.” 

The latest investment comes as Cathay reported an attributable profit of HK$3.8 billion in the first half of the year, versus a profit of HK$4.8 billion in the first half of 2023, with the year-on-year reduction principally attributable to the normalisation of ticket prices.  

Meanwhile, the results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$342 million, compared with a loss of HK$2.6 billion in the first half of 2023.  

Don't miss: Cathay repurchases remaining HK$9.7 billion of HK govt’s preference shares

Most recently, Cathay Pacific Airways bought back the remaining 50% of preference shares, worth about HK$9.75 billion, that were issued to the Hong Kong government as part of the Cathay Group’s recapitalisation in 2020.  
  
The Cathay Group’s overall HK$39 billion recapitalisation financing in 2020 included the issuance of HK$19.5 billion preference shares with warrants to the government; an HK$11.7 billion rights issue of ordinary shares to existing shareholders; as well as a HK$7.8 billion bridge loan facility provided by the  government.  
  
Together with the initial 50% of the preference shares brought back in December 2023, Cathay has fully repaid the government’s HK$19.5 billion investment.    

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