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Lam Ka-sing

Hong Kong flag carrier Cathay Pacific Airways has reported a 71 per cent year-on-year rise in net profit to HK$6.24 billion (US$802 million) for the first six months of 2026, driven by stronger passenger flight and cargo demand.
Cathay Group chairman Guy Bradley, who delivered the interim results for the first time since taking up the role earlier this year, said on Wednesday that fuel prices had fallen from their peak in the second quarter but were rising again due to escalating tensions in the Middle East.
“We expect the impact of elevated fuel prices will continue for the rest of the year and we remain alert to the changing geopolitical and market situation,” he said.
CEO Ronald Lam Siu-por said Cathay’s airfares were “supported” in the second quarter as more transit passengers chose Hong Kong following the Middle East war.
Growth was recorded across the group’s premium services, low-cost segment and cargo operations.
Net profit included a one-off gain of HK$1 billion arising mainly from the dilution of Cathay’s equity interest in Air China.
The group’s profit margin rose by 2.5 percentage points to 9.2 per cent in the six-month period compared with the same period last year.
Overall revenue jumped 25.3 per cent year on year to HK$68.06 billion.
Cathay, the premium carrier, said total passenger numbers reached 16 million in the first half, representing a year-on-year increase of 17.5 per cent.
Its passenger revenue jumped 26.3 per cent year on year to HK$43.2 billion in the first six months.
Budget unit HK Express reduced its loss before net finance charges and taxation to HK$73 million in the first half of this year, down from HK$524 million, reflecting a “substantial improvement in its financial results”.
“However, its performance was affected by the significant increase in jet fuel prices in the second quarter,” Bradley said.
Cathay Cargo’s total tonnage in the first half jumped by 8.5 per cent from a year earlier.

Looking ahead, summer travel demand in the third quarter appeared strong.
“We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors,” Bradley said.
He added that Cathay remained on track to reach its 2026 passenger capacity growth target of around 10 per cent as a group.
“For cargo, we are cautiously optimistic about the upcoming peak season, and we plan to add freighter services on trunk routes in line with the expected demand surge, while expanding freighter capacity through additional services operated by Air Hong Kong,” Bradley said.
Cathay announced a first interim dividend for ordinary shareholders of 26 HK cents per share, up by 30 per cent from the first interim dividend in 2025.
Bradley said the company would continue to make important investments in its future and had already committed about HK$150 billion to investments in its fleet, cabin and lounge products, and digital innovation.
“Looking ahead in the next 10 years, we target to have 150 new aircraft join our fleet, and [to operate] a network serving 150 destinations, if the market conditions are favourable,” he said.
“These aircraft will provide more capacity to support our growth plans and help build connectivity at our home hub.”
Lam said Cathay and HK Express combined had captured about 50 per cent of flight frequency share at Hong Kong International Airport, while competing with 140 other airlines.
He added that load factor - a measure of how efficiently an airline fills its available seating or cargo capacity – reached 87.5 per cent in the first half, the highest level since 2005.
“So we’re seeing very strong demand on our passenger flights,” Lam said.
He said the combination of fuel surcharges and fuel hedging had offset only half of the increased fuel costs incurred by the group during the second quarter.
“Base fares were dictated by market supply and demand, and the strong underlying ... demand seen since late last year is expected to be maintained into the third quarter,” he said.
Chief operations and service delivery officer Alex McGowan said the incoming 150 aircraft, which included Boeing 777-9 and Airbus A330-900 passenger jets along with Airbus A350F freighters, would be evenly split between driving growth and replacing older planes, expanding the total fleet to about 300 aircraft.
He said that while most deliveries were on track, the Boeing 777-9 and Airbus A350F had experienced industry-wide delays. The first Boeing jet was expected in the second half of next year, he said, with freighters arriving about six months late.
HSBC Global Investment Research had raised its 2026 profit forecast for Cathay by 34 per cent in late July as the airline had signalled higher profit growth, pointing to higher passenger and cargo yields.
Cathay’s share price rose by 2.8 per cent to close at HK$14.80 on Wednesday.


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Hong Kong economy

Cathay Pacific posts 71% profit rise to HK$6.24 billion in first half of year

A Cathay Pacific plane takes off from Hong Kong International Airport in May this year. Photo: Elson Li

A Cathay Pacific cargo plane parked at Hong Kong International Airport in Chek Lap Kok. Photo: May Tse

Customers check in for their flights at the Cathay Pacific counters at Hong Kong International Airport. Photo: May Tse

(From left) Cathay chief financial officer Rebecca Sharpe, CEO Ronald Lam Siu-por, chairman Guy Bradley, chief customer and commercial officer Lavinia Lau Hoi-zee and chief operations and service delivery officer Alex McGowan deliver the results. Photo: Karma Lo

Cathay Pacific planes (front and back) at Hong Kong International Airport. Photo: May Tse

Cathay Pacific tail strike in early July classified as ‘abnormal runway contact’

The rear of the Cathay Pacific Airbus A330 was damaged in the July 3 incident. Photo: Handout

The aircraft landed safely after the incident. Photo: Handout

Cathay Pacific expects first-half profit to jump 75% to HK$6.5 billion

Cathay Pacific carried 12 per cent more passengers in June compared with the same month last year and reported a 17 per cent increase for the first six months. Photo: Sam Tsang

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Hong Kong

Hong Kong Economy

Numbers driven by stronger demand, but Hong Kong flag carrier warns of headwinds caused by escalating Middle East conflict


Numbers driven by stronger demand, but Hong Kong flag carrier warns of headwinds caused by escalating Middle East conflict.


Cathay Pacific posts 71% profit rise to HK$6.24 billion in first half of year

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Numbers driven by stronger demand, but Hong Kong flag carrier warns of headwinds caused by escalating Middle East conflict

Numbers driven by stronger demand, but Hong Kong flag carrier warns of headwinds caused by escalating Middle East conflict