Hong Kong carrier Cathay Pacific said it has posted an attributable profit of HK$4.26 billion (US$546 million) for the first half of 2023, its first in three years as the carrier shrugs off the impact of the COVID-19 pandemic. That compares to a HK$5 billion loss in the same period last year.
Cathay said the profit included a one-off gain of HK$1.9 billion in the first half of the year from selling Air China shares, taking its stake in the carrier from 18.13 percent to 16.26 percent. Cathay’s return to profitability follows losses of HK$33.7 billion over three years during the pandemic, as it and airlines around the world grounded planes, laid off workers and took other measures to deal with the lack of international air traffic.
“The first half of 2023 has been a positive period for the Cathay Group, as we worked to rebuild connectivity at the Hong Kong international aviation hub following the full reopening of borders in Hong Kong and in the Chinese Mainland,” said Cathay chairman Patrick Healy. “As Hong Kong’s home carrier, our focus has been on adding more flights and more destinations to cater to the growing demand for travel, and we have been making good progress in these efforts. We reached 50% of pre-pandemic Group passenger flight capacity levels covering 70 destinations in March, and we have continued to increase our passenger capacity since. Furthermore, as the belly capacity from our passenger operations has grown, we also have been able to offer more choices for our cargo customers. Consequently, we have seen a trend of continued improvement in the performance of our airlines.”
Healy added that “while we are still only part way along our rebuilding journey, our results for the first six months of 2023 demonstrate that we are on the right track. Further demonstrating this, the Group plans to buy back 50% of the preference shares before the end of 2023 at a redemption price of over HK$9.75 billion, and the remainder by the end of July 2024, subject to completion of the proposed capital reduction and its business conditions at the relevant time. Building back connectivity at the Hong Kong international aviation hub remains our primary focus. We are on track to achieve our target of 70% pre-pandemic passenger flight capacity levels covering 80 destinations by the end of 2023, and we are confident of reaching 100% by the end of 2024.
“While we are pleased to be back in the top 10 of the world’s best airlines in renowned industry rankings,” Healy said, “we recognise there have been challenges across the aviation industry that have hindered our ability to deliver the highest service levels that our customers expect. We remain committed to investing in Cathay to provide a better experience for our customers, and we look forward to introducing more new cabin products in the near future. In terms of our cargo business, we expect it will continue to moderate compared with the exceptional levels of the past three years. Nevertheless, we anticipate a continued solid performance throughout the second half of 2023 with some tonnage improvements towards the end of the third quarter as we enter the traditional peak period.”
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