The Cathay Group said its 2024 net profit rose slightly from last year thanks to stronger cargo demand, higher passenger volumes, lower fuel price and higher cost efficiencies. The Cathay Group reported an attributable profit of HK$9.9 billion in 2024 compared to a profit of HK$9.8 billion in 2023 The Cathay Group’s airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HK$8.8 billion for the full year of 2024, versus a profit of HK$9.2 billion in 2023. Results from associates, the majority of which are recognised three months in arrears, were a full-year profit of HK$288 million, compared with a loss of HK$1.6 billion in 2023.
Cathay Group Chair Patrick Healy said: “This second consecutive year of solid financial performance is a testament to the outstanding effort and dedication of our global teams. It has enabled us to complete buybacks, pay dividends to our shareholders, reward our people and commit substantial investments that will enhance the experience for our customers and benefit our home hub, Hong Kong. We are excited about the future and remain firmly committed to strengthening the Hong Kong international aviation hub by boosting air travel and cargo capacity, and elevating our customer experience.
“Our financial performance gives us the confidence to commit to investing over HK$100 billion to coincide with the launch of the Three-Runway System,” Healy added. “We have already commenced taking delivery of more than 100 new-generation aircraft, as well as introducing new world-leading cabin interiors including Aria Suite and our all-new Premium Economy, new flagship lounges, and digital innovations. We are also continuing to expand our global network, having already announced 11 additional destinations for 2025 with more to come. Together, Cathay Pacific and HK Express will operate passenger services to more than 100 destinations around the world within this year.”
Cathay Cargo performed well in 2024, especially in the second half of the year with strong e-commerce demand being a key driver. Overall, cargo tonnage was 11% higher and yield was about 3% higher than in 2023.
On the travel side, Cathay Pacific and HK Express combined carried over 30% more passengers year on year. However, as more flights were added to the market, passenger yields (or average revenue generated per revenue passenger kilometre (RPK)) continued to normalise as expected. Cathay Pacific saw a 12% decrease in yield, while for HK Express this was even more pronounced with yields down 23% year on year, reflecting the intense competition on regional routes.
Cathay said it is committed to its dual-brand strategy to best serve customers with different needs, with Cathay Pacific as its premium full-service airline and HK Express as its low-cost airline. HK Express experienced short-term operational issues in 2024 that affected its earnings, with an average of five of its Airbus A320neo fleet grounded due to industry-wide Pratt & Whitney engine issues.
Although the Cathay Group’s airlines flew more, fuel was less expensive with the average into-plane unit price of fuel (excluding hedging) being over 9% lower year on year. Furthermore, with the increase in both passenger and cargo volumes, the Cathay Group (before subsidiaries and associates) was able to spread its fixed costs over a wider base, resulting in a 4.5% decrease in cost per available tonne kilometre (ATK) (excluding fuel) compared with 2023.
The results from associates, recognised three months in arrears, also improved from a HK$1.6 billion loss in 2023 to a HK$288 million profit in 2024. The Cathay Group’s associates primarily include Air China Limited (“Air China”) and Air China Cargo Co. Ltd. Air China’s results improved due to the recovery of the civil aviation market, increased fleet efficiency and stricter cost management.
In addition to Cathay buying back the remaining 50%, or HK$9.8 billion, of the preference shares from the Hong Kong SAR Government in July 2024, a total of nearly HK$4 billion was paid to the Government in preference share dividends over its holding period and in buying back the warrants in September 2024. In early January 2025, Cathay also repurchased approximately 68% of the HK$6.7 billion guaranteed convertible bonds due 2026.
Cathay’s full-year result has allowed it to announce a second interim dividend payment to ordinary shareholders of 49 cents per share. Together with the first interim dividend that had already been paid, a total of 69 cents per share or HK$4.4 billion will have been paid in ordinary share dividends in respect of 2024.
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