Cathay Pacific Airways has consolidated a broad-based recovery from the dark days of the Covid pandemic with a
1.1 per cent rise in net profit to HK$3.65 billion (US$465 million) for the first six months of 2025, compared with the same period last year. It was driven by three main factors – higher passenger volumes that absorbed lower yields, another consistent performance by its cargo operations, which sustained the airline during hard times, and lower fuel prices.
The result sets Hong Kong’s flag carrier up to meet the challenge of intense competition, amid rising demand, from a resurgent world aviation sector. It has signalled confidence with plans to buy 14 Boeing 777-9 jets, on top of 21 of the same model scheduled for delivery in 2027 or later, bringing its total investment to more than HK$100 billion in the coming years. This is on top of the
30 Airbus aircraft added last year to a previous order for 70.
Market sentiment signalled the airline still has quite a job ahead of it, with Cathay Group’s shares falling after the results and new plane orders were announced.
The challenge is reflected in the loss recorded by Cathay’s budget arm, HK Express, of HK$524 million before net finance charges and taxation, up from HK$73 million in the same period last year. The impact of earthquake rumours on travel to Japan, a core market, was held to blame. However, Cathay CEO Ronald Lam Siu-por said HK Express’ strong fundamentals supported confidence in the future.
Evidence that Cathay’s post-Covid revenue gains are exhausted is to be found in an increase of 27.8 per cent in passenger numbers year on year in the first half of the year, compared with a rise of only 9.5 per cent in passenger revenue. At the same time, however, the cargo business again demonstrated resilience despite tariff risks amid geopolitical tensions and the trade conflict between the United States and China.
The group recently reached 100 destinations in a two-year rebuilding journey following Covid. Things are looking up. But market sentiment reflects the next question: can the airline continue to build momentum after the immediate post-Covid gains? From the mid- and longer-term perspective, it is good to see Cathay investing in its fleet and hiring more pilots, including
mainland recruits, with some training in Australia before becoming second officers and others training in the United States. So far, the group has hired about 3,700 pilots, still below the pre-pandemic number of 3,800.
