Cathay Cathay Group Announces Financial Results for FY2024

[Cathay] Cathay Group announces financial results for 2024 ​ Cathay Pacific Japan Branch Press release: March 18, 2025 [Cathay] Cathay Group Announces Financial Results for FY2024 Second consecutive year of strong financial performance supported by cargo demand, passenger numbers, fuel costs and cost efficiencies
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https://prcdn.freetls.fastly.net/release_image/79915/112/79915-112-d4645f90e159a8b6d4f82740031420e0-628×126.jpg Cathay Group (Headquarters: Hong Kong, CEO: Ronald Lam) has announced its financial results for fiscal year 2024 (January to December). Compared to the previous year, it demonstrated strong financial performance supported by increased cargo demand, increased passenger numbers, lower fuel costs and improved cost efficiency. Cathay Group’s 2024 net profit was HK$9.9 billion. In 2023, HK$9.8 billion was recorded. For the full year 2024, Cathay Group airlines and
subsidiaries posted a net profit of HK$8.8 billion (compared to a profit of HK$9.2 billion in 2023, excluding exceptional items). Results from associated companies were mostly recognized three months ahead of schedule, resulting in a full-year profit of HK$288 million, compared to a loss of HK$1.6 billion in 2023. The following is a statement from Patrick Healy, Chairman of Cathay Pacific Airways, in conjunction with the announcement of the financial results. Chairman’s Statement HK$100 billion investment, 100 new aircraft purchases, 100 destinations Achieving two consecutive years of strong financial performance is a testament to the outstanding efforts and dedication of our global team. We completed the share buyback, distributed dividends to our shareholders, rewarded our employees, and continued to improve our customer experience and serve our home in Hong Kong. We are excited about the future and remain committed to expanding our air and cargo capabilities and improving the customer experience. Our financial performance gives us the confidence to invest more than HK$100 billion as the third runway becomes operational. We have already started taking delivery of more than 100 new generation aircraft, introducing state-of-the-art new cabins such as the Aria Suite and new Premium Economy Class, a new flagship lounge and digital innovations. We are also continuing to expand our network around the world, and have already announced the addition of 11 cities by the end of 2025, with plans to add many more. Cathay Pacific and HK Express plan to operate passenger flights to more than 100 destinations around the world by 2025. As a Hong Kong-based aviation group, we hope to continue to play a role in enhancing Hong Kong’s status as the world’s leading international aviation hub, connecting Hong Kong, mainland China and the rest of the world. We would like to express our sincere gratitude to Cathay’s employees, customers, shareholders, and the Hong Kong Special Administrative Region Government for their continued support. Increase freight demand and improve profits Cathay Cargo delivered a very strong performance in 2024, with strong e-commerce demand being a key driver, particularly in the second half of last year. Overall, cargo handling volume increased by 11% compared to 2023, and revenue (yield) improved by approximately 3%. Increase in passenger numbers and decline in revenue In the travel sector, combined Cathay Pacific and HK Express journeys increased by more than 30% year-on-year. However, as expected, passenger revenue (average revenue per revenue passenger kilometer (RPK)) continued to normalize as more flights were added to the market. Cathay Pacific saw a 12% decline in revenue, and this was even more pronounced for Hong Kong Express, which saw a 23% year-on-year decline reflecting strong competition on regional routes. Cathay is pursuing a dual branding strategy, with Cathay Pacific as a premium full-service airline and Hong Kong Express as a low-cost airline, in order to best serve customers with different needs. HK Express faced short-term
operational issues in 2024, impacting its revenue, due to the grounding of approximately five Airbus A320neo aircraft due to an industry-wide issue with Pratt & Whitney engines. Cathay has long-term confidence in HK Express’ business model as a low-cost carrier, offering lower fares and more destination options. We can expect the company to continue to grow and improve efficiency, paving the way for sustained profitability. HK Express is the world’s fastest growing airline and was recently named one of the world’s top five low-cost airlines by Airline Ratings. Lower fuel costs and increase cost efficiency Although Cathay Group airlines increased the number of flights they operated, fuel costs fell, with the average fuel load price (excluding hedging) being more than 9% lower year-on-year. Additionally, the increase in both passenger numbers and cargo volumes has enabled Cathay Group (excluding subsidiaries and affiliates) to spread its fixed costs over a wider base. As a result, we succeeded in reducing the cost per ton-kilometer (excluding fuel) by 4.5% compared to 2023. Improving performance of affiliated companies Results from associated companies are recognized three months ahead of schedule, but the company improved from a loss of HK$1.6 billion in 2023 to a profit of HK$288 million in 2024. The Cathay Group’s affiliated companies primarily include Air China (“Air China”) and Air China Cargo Co., Ltd. Air China’s improved performance is due to the recovery of the civil aviation market, improved fleet efficiency, and strict cost control. Stock repurchases, dividends, and employee compensation Cathay repurchased the remaining 50% of its preferred shares, or HK$9.8 billion, from the Hong Kong Special Administrative Region Government in July 2024, paid a total of approximately HK$4 billion in preferred stock dividends during the holding period, and also repurchased warrants in September 2024. Additionally, in early January 2025, we repurchased approximately 68% of our HK$6.7 billion convertible notes due in 2026. Cathay has announced that it will pay a second interim dividend of 49 cents per share to ordinary shareholders for 2024 following its full year results. Combined with the first interim dividend already paid, the 2024 ordinary share dividend will be 69 cents per share, totaling HK$4.4 billion. Sharing our successes with our people has always been an important part of Cathay’s culture. Cathay is pleased to be able to provide our employees with a total of more than 10 weeks’ worth of pay in discretionary bonuses and profit sharing. For Cathay Group’s 2024 annual results, please visit Click here to take a look. [About Cathay] Cathay is a premium travel lifestyle brand that combines travel and everyday life to provide an elevated experience. We provide services in a wide range of areas including flights, hotels, shopping, dining, wellness, and payments. Cathay Pacific is Hong Kong’s flag carrier with over 70 years of history and is a founding member of the oneworld alliance. The Cathay Group consists of low-cost carrier Hong Kong Express Airlines, specialized cargo carrier Air Hong Kong, and a number of other subsidiaries. Cathay Pacific operates over 16 daily flights from Japan to Hong Kong from six airports in five cities: Tokyo (Narita, Haneda), Osaka, Nagoya, Fukuoka and Sapporo, using A350-900/1000 and A330 aircraft. Cathay Pacific website:
https://www.cathaypacific.com/cx/ja_JP.html Official Facebook: https://www.facebook.com/cathaypacific/?locale=ja_JP Official LINE: https://lin.ee/gSwA0GH