Cathay Pacific Group reported a small improvement in its full-year net profit, as it hails the end of its post-pandemic “rebuilding” process.
The group, comprising mainline operator Cathay and low-cost unit HK Express, attributes its continued profitability to strong performance from its cargo business and an increase in passenger demand.
This was, however, offset by a continued decline in passenger yields – as much as 23% year on year at HK Express – amid greater competitive pressures. But it notes that the normalising of passenger yields “is still within expectation”.
For the year ended 31 December 2024, the airline group reported an attributable net profit of HK9.9 billion ($1.27 billion), up about 1% year on year.
Revenue for the year grew 10.5% to HK$104.4 billion, with passenger revenue up almost 11%. Cathay carried 22.8 million passengers in 2024, a 27% jump from the previous year as the airline expanded its network. This was reflected in a 31% rise in capacity, which outpaced a 27% rise in traffic.
HK Express, meanwhile, carried 6.1 million passengers, a 47% rise. Like its parent company, it grew capacity at a faster rate compared to traffic growth, leading to a 2.6 percentage point decline in load factor.
HK Express faced a double whammy of steep yield decline and engine issues on its Pratt & Whitney PW1100G-powered Airbus A320neo family aircraft. The low-cost operator had five aircraft on the ground – representing almost a quarter of its A320neo/A321neo fleet – during 2024.
Cathay adds that its annual profit was helped by lower fuel prices, which allowed for cost savings against an increase in flights. Group expenses for the year grew 11% to HK$94.2 billion.
Airline chief Ronald Lam says the airline is “closing the chapter” on its rebuild, adding: “We are committed to our dual-brand strategy that ensures we are able to serve customers with different needs, with Cathay Pacific as our premium full-service airline and HK Express as our low-cost airline.”
