Wednesday, March 12, 2025 The Cathay Group today announced its annual results for the year 2024, showcasing a solid financial performance driven by stronger cargo demand, higher passenger volumes, lower fuel price and higher cost efficiencies compared with the previous year.

The Cathay Group reported an attributable profit of HK$9.9 billion in 2024, which compares with 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.”

Stronger cargo demand, higher yields

Cathay Cargo performed very 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.

Higher passenger volumes, lower yields

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 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.

Cathay has confidence in the low-cost carrier business model of HK Express in the long term, with its commitment to offering low fares and more destination choices for customers. A path to sustained profitability can be expected as the airline continues to grow and increase its efficiencies. HK Express is the world’s fastest-growing airline according to aviation analytics provider OAG, and was recently named one of the world’s top five low-cost airlines by Airline Ratings.

Lower fuel price and higher cost efficiencies

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.  

Improved results from associates 

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.  

Buybacks, dividends and rewarding people 

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.

Sharing success with its people has always been a key part of Cathay’s culture. Cathay is pleased to be providing its people with more than 10 weeks of eligible pay in total in the form of discretionary bonus and profit sharing.

HK$100 billion in investments, 100 new aircraft, 100 destinations

Mr Healy continued: “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.

“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.

“As Hong Kong’s home airline group, we look forward to continuing to do our part to elevate Hong Kong’s status as a world-leading international aviation hub connecting Hong Kong, the Chinese Mainland, and the world. I would like to sincerely thank our people, our customers, our shareholders and the Hong Kong SAR Government for the invaluable support they have shown Cathay.”

Please click here to read the Cathay Group’s 2024 Annual Results.