Hong Kong’s Cathay Pacific group remained in the black its half-year earnings, though it saw its operating profit decrease on the back of shrinking yields and rising fuel costs.
For the six months ended 30 June, the airline group reported an operating profit of around HK$6 billion ($770 million), down 31% year on year.
Half-year revenue was up 13.8% to HK$49.6 billion, led by a 19.7% jump in passenger revenue. Mainline operator Cathay carried 10.7 million passengers during the six-month period, up 36% year on year, with traffic increasing 35% and capacity up 42.7%.
However, the airline recorded an 11% decline in passenger yields, with the return of capacity to market. Airline chair Patrick Healy notes the group has seen yields “begin to normalise as expected”.
The group saw costs excluding net finance charges increase 18% year on year to HK$43.7 billion. Fuel-related expenses were up 33% across the group, while maintenance costs grew by 24%.
Cathay group reported a net profit of HK3.6 billion, down 15% against the year-ago period.
Low-cost unit HK Express swung to the red in the first-half of the year, reporting a loss of HK$73 million as it was impacted by falling yields and operational challenges.
The loss compared to a 2023 half-year profit of HK$333 million. Healy notes that a “significant portion” of the operator’s A320neo fleet were grounded this year due to technical issues with Pratt & Whitney PW1100G engines.
