【293 Performance】Cathay Pacific Airways rises over 5%; full-year profit increases by 10% to 10.8 billion; second interim dividend up 31% to 64 cents; Hong Kong Express losses widen

SocialAnxietyStaker · 2026-03-11T08:16:10+00:00

Cathay Pacific Airways announced a forecasted revenue increase of 12% to 116.77 billion yuan by 2025, with profits rising 10% to 10.83 billion yuan, and declared a mid-term dividend of 0.64 yuan per share, a 31% increase. The stock price rose with the performance, reaching a high of 13.36 yuan. Cathay plans to expand flights and acquire new aircraft to enhance service quality. Hong Kong Express faces challenges of expanding losses and will continue efforts to improve its business.

SocialAnxietyStaker

2026-03-11 08:16:10

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Cathay Pacific (00293) announced that by 2025, revenue will increase by 12% year-on-year to HKD 116.77 billion, with profit rising by 10% to HKD 10.83 billion; the second interim dividend will be HKD 0.64 per ordinary share, up 31% annually. Based on Cathay Pacific’s Wednesday (11th) midday closing price of HKD 12.8, the current dividend yield is approximately 6.6%.

Cathay’s post-earnings rally widened, reaching a high of HKD 13.36, up 5.9%. At 1:10 p.m., it was up 4.8%, trading at HKD 13.32.

For the full year of 2025, Cathay expects basic earnings per share (EPS) to increase by 11% to HKD 1.655, diluted EPS to rise by 22% to HKD 1.618, and per-share dividend to grow by 22% to HKD 0.84, while the margin declined by 0.2 percentage points to 9.3%.

Cathay Pacific CEO Augustus Tang said that at the start of 2025, after a comprehensive rebuild of flight schedules, the group will launch services to 20 destinations, covering over 100 passenger routes worldwide. The team continues to expand, and by the end of 2025, employee numbers will exceed 33,000.

How much will Cathay employees receive in annual bonuses? See 【Next Page】

▲ Cathay 2025 performance data.

▼ Click the image to enlarge

Contents

Cathay will receive 8 new narrow-body aircraft this year, with A330s featuring flat-bed business class beds by year-end
Cathay’s profit growth accelerates in the second half of 2025
Express freight’s pre-expense and tax loss nearly quadruples in 2025

Cathay will receive 8 new narrow-body aircraft this year, with A330s featuring flat-bed business class beds by year-end

Tang indicated that after reaching recent highs, recruitment and training are now stable and aligned with growth plans. Cathay will take delivery of 8 new narrow-body aircraft in 2026, expecting about 10% growth in passenger capacity.

Regarding Hong Kong Express, Cathay adopts a long-term perspective, expecting to continue expanding and improving efficiency based on a low-cost carrier business model, moving toward sustainable profitability in the coming years. The airline has implemented multiple measures to enhance business resilience and has already begun to see positive results, with an encouraging start in the first two months of 2026.

For Cathay Pacific, the focus will be on increasing flight frequencies on existing routes and adding new destinations such as Seattle, launched at the end of March. By year-end, a new business class product with fully flat beds—Yarise Business Class (with direct access)—will be introduced on regional Airbus A330-300 aircraft. Subsequently, the Boeing 777-9, equipped with a new global first-class experience, will enter service in 2027.

Cathay also plans to reduce economy class seats on its Airbus A321neo narrow-body aircraft to provide more spacious seats, reaffirming its commitment to offering the most comfortable and enjoyable flying experience. On the ground, the flagship Hong Kong Premium Lounge—Universal Lounge First Class Lounge—will reopen after a comprehensive redesign. Later this year, the first Cathay lounge in New York will open.

For Cathay Cargo, the first two months of 2026 have shown a steady start.

Cathay’s profit growth accelerates in the second half of 2025

In the first half of 2025, Cathay recorded a 1% increase in profit. The full-year results show that profit growth accelerated in the second half, with a 14% increase to HKD 7.18 billion in the second half. For the entire year, Cathay’s attributable profit to the group is expected to rise 60% year-on-year to HKD 530 million.

Excluding associate companies and impairment-related special items, Cathay and its subsidiaries’ recurring profit is projected to increase 13% to about HKD 10 billion, with the second half up 23% year-on-year to HKD 6.16 billion.

During the year, passenger revenue yield, reflecting Cathay’s ticket pricing levels, fell 10% to HKD 60.4 cents, while cargo yield declined about 5% to HKD 2.69.

On the financial side, Cathay’s net debt decreased 19% year-on-year to HKD 46.81 billion, with unrestricted cash and equivalents increasing 33% to HKD 25.44 billion. The debt-to-equity ratio is 1.1 times, down 0.32 times from last year.

Express freight’s pre-expense and tax loss nearly quadrupled in 2025

Cathay’s wholly owned subsidiary, Hong Kong Express, reported a 6.7% year-on-year increase in passenger revenue to HKD 6.39 billion in 2025. The airline recorded a pre-expense and tax loss of about HKD 1 billion, a 3.9-fold increase compared to the previous year. Factors impacting Express’s profitability include changing customer travel preferences, the opening of several new routes (which require time to mature), and ongoing issues with the industry-wide Pratt & Whitney engines, which have kept some aircraft grounded.

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