Hong Kong’s Cathay reports 15.3% drop in profits, reeling in HK$3.61 billion in first 6 months

“The first half of 2024 was another strong period for Cathay as we maintain our focus on growing our business in a consistent and sustainable way,” he said.

“Our strong performance for the first six months of the year was primarily driven by the ongoing robust demand for travel, and the solid performance of our cargo business,” he said.

Air fares soared amid strong demand for travel and a lower supply of seats in the initial months of last year after Hong Kong lifted pandemic-related travel restrictions in January 2023.

Cathay also reported on Wednesday a 13.8 per cent increase in revenue to HK$49.6 billion, compared with HK$43.6 billion in the same period last year.

It attributed the rebound in the first half to strong passenger flight business, which increased to HK$33 billion, compared with HK$27.6 billion in the same period last year.

The company also carried 10.66 million passengers in the first half, a 36.4 per cent year-on-year jump from 7.8 million.

Meanwhile, cargo revenue rose 1.5 per cent, to HK$10.9 billion, compared with the first half in 2023, as the company expected healthy demand to continue.

HK Express, Cathay’s budget arm, also reported a net profit loss for the first half of this year to HK$73 million, compared with a HK$333 billion profit loss a year ago.

The company attributed this to a high demand for short-haul flights, a decline in ticket prices alongside the increase of regional capacity in the market, and the grounding of a significant portion of the airline’s Airbus A320 aircraft due to engine issues.