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The Cathay Group posted solid performance in 2024 driven by stronger cargo demand, higher passenger volume, lower fuel price and higher cost efficiencies
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Attributable profit of HK9.9 billion was recorded compared to 2023’s HK9.8 billion
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Cathay Cargo performed well especially in the second half of the year due to strong e-commerce demand
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Overall, cargo tonnage was 11% higher and yield was some 3% higher than in 2023
The Cathay Group posted solid financial performance in 2024, driven by stronger cargo demand, higher passenger volume, lower fuel price and higher cost efficiencies.
Last year’s attributable profit of HK9.9 billion was slightly higher than 2023’s HK9.8 billion.
The Group’s airlines and subsidiaries – excluding exceptional items – reported an attributable profit of HK$8.8 billion for all of 2024 against a profit of HK$9.2 billion in 2023.
Results from associates, the majority of which are recognized three months in arrears, were a full-year profit of HK$288 million, compared with a loss of HK$1.6 billion in 2023.
“This second consecutive year of solid financial performance is a testament to the outstanding effort and dedication of our global teams,” said Patrick Healy, Cathay Group chairman, in a statement adding that “It has enabled us to complete buybacks, pay dividends to our shareholders, reward our people and commit substantial investments that will enhance the experience for our customers and benefit our home hub, Hong Kong.”
The Group also said Cathay Cargo “performed very well” last year, especially in the second half of the year. This was due to the strong e-commerce demand being a key driver. Overall, cargo tonnage was 11% higher and yield was some 3% higher than in 2023.
As for the travel side, Cathay Pacific and HK Express combined carried over 30% more passengers year-on-year.
As more flights were added to the market, however, passenger yields continued to normalize as expected. Cathay Pacific saw a 12% slide in yield, while for HK Express this was even more pronounced with yields down 23% year on year, reflecting the intense competition on regional routes.
Cathay said it is committed to its dual-brand strategy to best serve customers with different needs, with Cathay Pacific as its premium full-service airline and HK Express as its low-cost airline.
Cathay confidence in the low-cost carrier business model of HK Express in the long term, with its commitment to offering low fares and more destination choices for customers.
“A path to sustained profitability can be expected as the airline continues to grow and increase its efficiencies,” stated Cathay. HK Express is the world’s fastest-growing airline according to aviation analytics provider OAG, and was recently named one of the world’s top five low-cost airlines by Airline Ratings.
With the increase in both passenger and cargo volumes, the Cathay Group was able to spread its fixed costs over a wider base, resulting in a 4.5% decrease in cost per available ton kilometer compared with 2023.
The results from associates also improved from a HK$1.6 billion loss in 2023 to a HK$288 million profit in 2024. The Cathay Group’s associates primarily include Air China Limited (Air China) and Air China Cargo Co. Ltd.
Air China’s results improved due to the recovery of the civil aviation market, increased fleet efficiency and stricter cost management.
In addition to Cathay buying back the remaining 50%, or HK$9.8 billion, of the preference shares from the Hong Kong SAR government in July 2024, a total of nearly HK$4 billion was paid to the government in preference share dividends over its holding period.
In early January 2025, Cathay repurchased around 68% of the HK$6.7 billion guaranteed convertible bonds due next year.
Cathay’s full-year result has allowed it to announce a second interim dividend payment to ordinary shareholders of 49 cents per share. Together with the first interim dividend that was already paid, a total of 69 cents per share or HK$4.4 billion will have been paid in ordinary share dividends in 2024.
“We are excited about the future and remain firmly committed to strengthening the Hong Kong international aviation hub by boosting air travel and cargo capacity, and elevating our customer experience. Our financial performance gives us the confidence to commit to investing over HK$100 billion to coincide with the launch of the Three-Runway System,” said Healy.
He added that they have already commenced taking delivery of more than 100 new-generation aircraft, as well as introducing new world-leading cabin interiors.
“We are also continuing to expand our global network, having already announced 11 additional destinations for 2025 with more to come. Together, Cathay Pacific and HK Express will operate passenger services to more than 100 destinations around the world within this year,” said Healy.
