Hong Kong-based carrier Cathay Pacific Airways is projecting a significant boost in its first-half profit, with figures potentially rising by as much as 76% compared to the same period last year. The airline group anticipates a profit between approximately HK$6 billion and HK$6.5 billion (around £600 million to £650 million) for the six months ending 30 June 2026, a substantial increase from HK$3.7 billion a year earlier. This strong performance is attributed to robust passenger and cargo demand, an improved showing from its low-cost subsidiary HK Express, and enhanced contributions from associated companies.
These impressive figures include a one-off gain of approximately HK$1.4 billion from a partial divestment of its stake in Air China. However, even excluding this exceptional item, Cathay Pacific reported solid underlying demand across both its passenger and cargo operations. This optimistic outlook comes as the wider aviation sector grapples with considerable challenges, notably a severe shock to fuel costs. The International Air Transport Association (IATA) predicted in June that global airline fuel bills would climb to approximately $350 billion this year, up from $252 billion in 2025, with jet fuel prices averaging $152 per barrel – an increase of almost 70% compared to 2025 levels.
Despite these significant headwinds, Cathay Pacific has managed to report stronger earnings. The Hong Kong-listed carrier's shares saw a jump of over 3% in the afternoon trading session, reversing earlier dips, as the stronger profit forecast surpassed some analysts' predictions. HSBC, for instance, had projected a first-half profit of HK$5.1 billion for Cathay Pacific.
On the cargo front, Cathay Cargo transported 9% more goods in June compared to the previous year, with total tonnage for the first half of 2026 also up by 9%. Chief Customer and Commercial Officer Lavinia Lau highlighted semiconductor and pharmaceutical shipments as key growth drivers, bolstering its specialist Cathay Expert and Cathay Pharma product lines. Looking ahead, Ms Lau indicated the group would monitor the potential impact on e-commerce flows from new customs duties on low-value imports into Europe.
Passenger numbers also saw healthy growth, with Cathay Pacific carrying 12% more passengers in June year-on-year, and available seat kilometres rising by 6%. For the first half of the year, passenger figures were up by 17%. Load factors remained strong despite June typically being a softer month, partly aided by traffic rerouted through Hong Kong amidst ongoing tensions in the Middle East. Demand for premium cabins also stayed robust, driven by strong corporate and premium leisure travel.