It says underlying performance is driven by solid demand across both passenger and cargo operations
Published Wed, Jul 22, 2026 · 01:12 PM — Updated Wed, Jul 22, 2026 · 04:46 PM
[HONG KONG] Hong Kong’s Cathay Pacific Airways said on Wednesday (Jul 22) its first half profit may jump as much as 76 per cent from a year earlier, boosted by strong passenger and cargo demand, improved performance from low-cost carrier HK Express, and higher contributions from associates.
The airline group forecast a profit of about HK$6 billion (US$765.4 million) to HK$6.5 billion for the six months ended Jun 30, up from HK$3.7 billion in the same period a year earlier.
The results include a one-time gain of about HK$1.4 billion from the partial dilution of its stake in Air China.
Stripping out the one-off item, underlying performance was driven by solid demand across both its passenger and cargo operations, the airline said.
The results come as the broader aviation industry grapples with a severe fuel cost shock.
The International Air Transport Association forecast in June that airlines’ fuel bills would surge to about US$350 billion this year from US$252 billion in 2025. It said jet fuel prices would average US$152 per barrel, almost 70 per cent above 2025 levels, a headwind Cathay acknowledged even as it reported stronger earnings.
HSBC had forecast Cathay Pacific would report HK$5.1 billion in H1 profit, according to a recent note.
Cathay Cargo carried 9 per cent more cargo in June compared with a year earlier, with total tonnage in H1 also up 9 per cent.
Chief customer and commercial officer Lavinia Lau said semiconductor and pharmaceutical shipments were the main growth drivers, supporting its specialist Cathay Expert and Cathay Pharma product lines. She said the group would monitor the potential impact on e-commerce flows from new customs duties on low-value imports into Europe.
On the passenger side, Cathay Pacific carried 12 per cent more passengers in June year on year, with available seat kilometres rising 6 per cent. Passenger numbers were up 17 per cent in H1.
Load factors held up despite June historically being a softer month, partially helped by rerouted traffic through Hong Kong amid the ongoing Middle East conflict. Demand in premium cabins also remained robust, driven by strong corporate and premium leisure travel.
“The outlook for the summer peak remains encouraging, particularly across our long-haul network,” Lau said.
Budget unit HK Express was a softer spot, with the number of passengers down 4 per cent in June after the carrier trimmed capacity to offset higher fuel costs. Bookings for July are running ahead of last year, Lau said. REUTERS
