Hong Kong’s flagship airline additionally ordered 14 extra Boeing 777-9 wide-body jets because it renews its fleet, taking its whole order for the mannequin to 35 with choices for one more seven.
Cathay reported a 1% improve in first-half revenue to HK$3.65 billion ($465 million) on a robust leap in passenger numbers, decrease gasoline costs and a gentle cargo efficiency.
However its passenger yields, a proxy for airfares, fell 12.3% at its principal model and 21.6% at its low-cost provider HK Categorical in the course of the interval as Cathay and its rivals added capability.
“HK Categorical continues to face short-term challenges,” Cathay Chairman Patrick Healy mentioned of the funds airline, which posted a HK$524 million first-half loss earlier than internet finance expenses and taxation. He mentioned Cathay was taking a long-term view and a path to profitability was anticipated for HK Categorical.
Shares in Cathay fell as a lot as 10.7% after the half-year outcomes had been introduced to the bottom degree since July 4, 2025. They had been on observe for the most important one-day share drop since November 2008, whereas the benchmark Grasp Seng Index gained 0.2%. “The outcomes had been according to expectations however the efficiency from the funds airline phase was not spectacular,” mentioned Steven Leung, a gross sales director in Hong Kong at brokerage agency UOB Kay Hian. Yields at Asia’s airways are coming down from post-pandemic document highs as carriers proceed so as to add extra capability, intensifying competitors. The area’s air journey restoration had lagged the remainder of the world as a consequence of China and Hong Kong being slower to return to worldwide flying after COVID-19.
Asian peer Singapore Airways mentioned final week that yields its principal model had declined by 3.5% within the April to June quarter, whereas these at its low-cost provider Scoot had been down 4.7%.
CARGO OUTLOOK
Based mostly on the world’s busiest cargo airport, Cathay is certainly one of Asia’s largest cargo carriers and has benefited lately from rising volumes of e-commerce out of China.
Cathay on Wednesday famous cargo market uncertainty attributable to adjustments to U.S. tariffs this yr, particularly the cancellation of a duty-free exemption for low-value packages from China and Hong Kong in early Might.
Nonetheless, the airline mentioned its cargo enterprise confirmed resilience and capability was being redeployed to markets that remained sturdy. The cargo division’s half-year income rose 2.2% to HK$11.1 billion, whereas yields fell 3.4%.
Cathay’s order for 14 extra 777-9 planes with GE engines exercised choices secured as a part of a 2013 order for 21 of the jets, and provides choices to buy one other seven sooner or later, the airline mentioned.
Cathay mentioned the 14 jets had a listing worth of $8.1 billion, however it had secured vital reductions, as is customary for main airways. It expects the plane to be delivered by 2034.
The long-delayed 777-9, Boeing’s newest model of its 777 airplane, has not but been licensed by the U.S. Federal Aviation Administration. Boeing CEO Kelly Ortberg mentioned final month the mannequin is present process flight testing and the planemaker hopes to start out deliveries subsequent yr.
Cathay mentioned in March it was anticipating its first 777-9 supply in early 2027.
