HONG KONG, 13 March 2025: Cathay Group announced its annual results for 2024 on Wednesday, showcasing a solid financial performance driven by stronger cargo demand, higher passenger volumes, lower fuel price and higher cost efficiencies compared with the previous year.
The Cathay Group reported an attributable profit of HKD9.9 billion in 2024, compared to HKD9.8 billion in 2023.
The Cathay Group’s airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HKD8.8 billion for 2024 versus a profit of HKD9.2 billion in 2023. Results from associates, the majority of which are recognised three months in arrears, were a full-year profit of HKD288 million, compared with a loss of HKD1.6 billion in 2023.
Cathay Group Chair Patrick Healy said: “This second consecutive year of solid financial performance is a testament to our global teams’ outstanding effort and dedication. 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.”
Stronger cargo demand
Cathay Cargo performed very well in 2024, especially in the second half, with strong e-commerce demand being a key driver. Overall, cargo tonnage was 11% higher, and yield was about 3% higher than in 2023.
Higher passenger volumes
Cathay Pacific and HK Express carried over 30% more passengers on the travel side. However, as the airlines added flights to the market, passenger yields (or average revenue generated per revenue passenger kilometre (RPK)) continued to normalise as expected. Cathay Pacific saw a 12% decrease 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 is committed to its dual-brand strategy to serve customers with different needs. Cathay Pacific is its premium full-service airline, and HK Express is its low-cost airline. HK Express experienced short-term operational issues in 2024 that affected its earnings, with an average of five of its Airbus A320neo fleet grounded due to industry-wide Pratt & Whitney engine issues.
Cathay has confidence in the long-term, low-cost carrier business model of HK Express, with its commitment to offering low fares and more destination choices for customers. A path to sustained profitability can be expected as the airline grows and increases its efficiencies. 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.
Lower fuel price and higher cost efficiencies
Although Cathay Group’s airlines flew more, fuel was less expensive. The average into-plane unit fuel price (excluding hedging) was over 9% lower year-on-year.
With the increase in both passenger and cargo volumes, the Cathay Group (before subsidiaries and associates) was able to spread its fixed costs over a broader base, resulting in a 4.5% decrease in cost per available tonne kilometre (ATK) (excluding fuel) compared with 2023.
Improved results from associates
The results from associates, recognised three months in arrears, also improved from a HKD1.6 billion loss in 2023 to a HKD288 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.
Buybacks and dividends
In addition to Cathay buying back the remaining 50%, or HKD9.8 billion, of the preference shares from the Hong Kong SAR Government in July 2024, nearly HKD4 billion was paid to the Government in preference share dividends over its holding period and in buying back the warrants in September 2024.
In early January 2025, Cathay repurchased approximately 68% of the HK$6.7 billion guaranteed convertible bonds due 2026.
Cathay’s full-year result has allowed it to announce a second interim dividend payment of 49 cents per share to ordinary shareholders. With the first interim dividend already paid, 69 cents per share or HKD4.4 billion will have been paid in ordinary share dividends in 2024.
Cathay confirms it will provide its people with more than 10 weeks of eligible pay through discretionary bonuses and profit sharing.
HKD100 billion in investments, 100 new aircraft, 100 destinations
Healy continued: “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.
“We have already commenced taking delivery of more than 100 new-generation aircraft and introducing new world-leading cabin interiors, including Aria Suite and our all-new Premium Economy, new flagship lounges, and digital innovations.
“We are also continuing to expand our global network, having already announced 11 additional destinations for 2025, with more to come. Cathay Pacific and HK Express will operate passenger services to more than 100 destinations this year.”
