It has been one of the biggest beneficiaries of Middle East travel disruptions as passengers rerouted and chose alternative airlines
Published Wed, Jul 22, 2026 · 01:12 PM
CATHAY Pacific Airways expects a jump in first-half net income, driven by strong passenger and cargo demand even as it absorbs the worst of the oil-price shock from the Iran war.
The carrier forecast HK$6 billion (US$765 million) to HK$6.5 billion in profit for the period, up from about HK$3.7 billion a year earlier, according to a Hong Kong stock exchange filing on Wednesday.
A HK$1.4 billion gain from the further dilution of Cathay’s stake in Air China — reduced to 12.85 per cent from 15.05 per cent — helped boost earnings.
Overall, Cathay’s financial performance is expected to be shaped by several factors — from elevated oil prices to a surge in passengers avoiding Gulf routes.
The Hong Kong carrier has been one of the biggest beneficiaries of Middle East travel disruptions, with passengers rerouting and choosing alternative airlines.
Like the rest of the aviation industry, the airline has absorbed a sharp jump in jet fuel costs due to the Iran conflict. Cathay’s hedging of 30 per cent of its jet fuel needs has helped absorb costs, as well as moves to levy fuel surcharges on passengers and cargo.
Cathay’s air cargo division is likely to show strength through an uptick in freight including strong AI shipments, according to HSBC’s Parash Jain. BLOOMBERG
