Cathay Pacific expects a “strong” showing for the second-half financial results, as it approaches full capacity recovery January next year.
In traffic results for November, the Hong Kong-based airline says it “projects a strong second-half…result, driven by elevated cargo demand and reduced fuel prices”.
Cathay Group, which also comprises low-cost unit HK Express, was profitable for the six months ended 30 June, though its operating profit – at around HK$6 billion ($772 million) – was down 31% on shrinking yields and rising fuel costs.
For the second half of the 2024, Cathay expects “normalisation” of yields to continue, “as the supply of flights increases to meet demand in the overall market as expected”.
Group customer and commercial chief Lavinia Lau adds: “With respect to the Cathay Group’s consolidated 2024 full-year financial result, the second half of the year has historically been the stronger of the two halves for the Group and this has been the case this year as it was in 2023.”
The group will reach 100% of pre-pandemic flights from January, Lau confirms, with a network of 100 cities worldwide by the end of next year.
In November, the airline carried just over 2 million passengers, up 23% year on year, with RPKs increasing 26% against a 21% rise in capacity.
Lau notes: “Travel demand was particularly robust on our routes to Japan and South Korea, driven by traffic from Hong Kong as well as Australia and Southeast Asia. Hong Kong was also a popular destination for travellers from Southeast Asia, where the school holidays drove increased leisure travel demand.”
On cargo, which is expected to buoy the airline’s earnings, Cathay saw “healthy market momentum” driven by e-commerce, along with demand for perishables from the Americas and Southwest Pacific.
