Cathay Pacific Airways, Hong Kong’s flagship carrier, posted a solid financial performance last year, buoyed by rising passenger and cargo demand, enhanced operational capacity, and lower fuel prices.
According to its 2024 annual results released on Wednesday, the airline generated HK$104.37 billion ($13.43 billion) in revenue, representing a 10.5 percent year-on-year increase. Net profit edged up 1 percent from the previous year to HK$9.88 billion.
The company announced a second interim dividend of 49 Hong Kong cents a share, bringing the annual payout to 69 Hong Kong cents.
The resilient demand on long-haul routes, strong cargo operations, and lower jet fuel prices in the latter half of 2024 contributed to the company’s financial performance in 2024, said Jason Sum, an equity research analyst at DBS Bank.
The group’s two airlines — Cathay Pacific and budget carrier HK Express — saw a combined passenger increase of over 30 percent last year. On the cargo side, tonnage rose by 11 percent year-on-year, with yields also climbing around 3 percent. According to the group’s annual report, “Cathay Cargo performed very well in 2024, especially in the second half of the year with strong e-commerce demand being a key driver.”
The group also benefited from a decline in average fuel prices, which fell more than 9 percent year-on-year.
Cathay Group CEO Ronald Lam Siu-por announced that the company has completed a two-year rebuild effort, with flight volumes returning to pre-pandemic levels as of this January.
After hiring and training 7,000 new employees in 2024, the group plans to add up to 4,000 more employees by the end of the year, raising its total workforce to around 34,000 to support business growth, he added.
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HK Express reported a net loss of HK$400 million last year, with an average of five Airbus A320neo aircraft grounded because of industrywide Pratt & Whitney engine issues. Lam said this is a short-term challenge, and he remains optimistic about the airline achieving profitability in the long run.
Chairman Patrick Healy said the financial performance has given the group the “confidence” in its commitment to invest HK$100 billion over the next seven years — an announcement made in August. This investment aims to enhance customer experience and reinforce Hong Kong’s position as an international aviation hub.
Cathay also has begun taking delivery of more than 100 new-generation aircraft, Healy said the company has been making efforts to expand its global network, with Cathay Pacific and HK Express expected to operate passenger services to more than 100 destinations by year-end.
Given the favorable macroeconomic backdrop — including the low unemployment rate and rising real wages driven by easing inflation — as well as moderating pricing pressures, positive operating leverage that enhances unit cost efficiency, and lower jet fuel prices, the overall outlook for the aviation industry remains positive, Sum said.
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But he cautioned that the recovery in the sector is not without its challenges. Increasing competition, with airlines worldwide ramping up flight frequencies, could exert downward pressure on passenger yields. Additionally, “heightened trade tensions, widespread tariffs, and the potential removal of tariff exemption for e-commerce could reduce cargo demand,” Sum said.
Government data released on Tuesday revealed a 13.8 percent year-on-year increase in the business receipts index for Hong Kong’s transportation sector in 2024, encompassing land, water, and air transport.
Moreover, the latest data from the Airport Authority Hong Kong showed a 17 percent increase in aircraft movements in January, totaling 33,660 — the highest following the COVID-19 pandemic.
Passenger traffic in Hong Kong reached 5.28 million in January, a 27.8 percent year-on-year increase. All categories of travelers, including Hong Kong residents, visitors, and transit passengers, saw double-digit growth, with particularly strong increases in travel to Southeast Asia, the Chinese mainland, and Japan.
