HONG KONG (dpa-AFX) - Hong Kong flag carrier Cathay Pacific Airways Limited (CPCAF.OB, CPCAY.PK) reported Wednesday lower profit in its first half, despite higher revenues. The company further said it is investing over HK$100 billion to strengthen Hong Kong's international aviation hub status.
Cathay Group also announced the purchase of 30 Airbus A330-900 aircraft with the right to acquire an additional 30 aircraft in future. These new regional widebody aircraft are expected to be delivered from 2028, and will join the Cathay Pacific fleet principally serving destinations in Asia.
In the first half, attributable profit was HK$3.61 billion, down 15.3 percent from last year's HK$4.27 billion. Earnings per share were 47 HK cents, down 14.9 percent from 55.2 HK cents a year ago.
Adjusted attributable profit was HK$3.85 billion in the first half, compared to a profit of HK$4.76 billion a year earlier, with the year-on-year reduction principally attributable to the normalisation of ticket prices.
Revenue was HK$49.60 billion, up 13.8 percent from HK$43.59 billion last year. Cathay Pacific's passenger revenue increased 20 percent to HK$30.02 billion.
Passenger flight capacity, measured in available seat kilometres, increased 42.7 percent to 52.88 billion ASKs, while traffic, measured in revenue passenger kilometres, climbed 34.9 percent to 43.58 billion RPKs. Meanwhile, passenger load factor fell to 82.4 percent from last year's 87.2 percent.
Regarding its investment, Cathay said it will invest more than HK$100 billion over the next seven years as part of its strategy to further elevate its customer experience, and strengthen Hong Kong's international aviation hub status riding on the Three-Runway System. The major investments will be in its fleet, cabin products, lounges, and digital and sustainability leadership.
Cathay now has more than 100 new-generation aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft in future.
Cathay further announced a first interim dividend to ordinary shareholders totalling approximately HK$1.3 billion.
Cathay remains on track to reach 100 percent of its pre-pandemic flights within the first quarter of 2025 as planned. To support that pace of growth, Cathay is making good progress with increasing its Group headcount by 5,000 people this year to a total of 29,000.
In Honk Kong, Cathay Pacific shares were trading at HK$7.840, down 2.24 percent.
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