Cathay Group posts solid H1 profit and traffic gains

Strong first‑half profit guidance

The Cathay Group expects to record consolidated profit attributable to shareholders of approximately HK$6.0–6.5 billion for the six months ended 30 June 2026. This profit range includes a deemed partial disposal gain of about HK$1.4 billion arising from dilution of the Group’s equity interest in Air China Limited. The projected profit compares with around HK$3.7 billion achieved in the first half of 2025. The guidance is based on a preliminary review of unaudited consolidated management accounts and other information available to the Board, and the Group is still finalising its results.

Management highlighted that the profit outlook reflects both operational improvements and the impact of the Air China holding dilution. The inclusion of the disposal gain is a significant contributor within the expected earnings range. The Group has not yet provided a detailed breakdown of underlying operating performance, but the traffic data for passenger and cargo operations points to broad‑based volume growth over the period. Final audited interim results will provide more comprehensive financial detail once completed.

June 2026 passenger traffic momentum

In June 2026, Cathay Pacific (0293.HK) and HK Express together carried more than 3.1 million passengers, representing a year‑on‑year increase of about 9%. The figures indicate continued recovery and expansion in the Group’s passenger operations at the outset of the summer travel season. Bookings for July, a peak travel month, were reported to be ahead of last year, suggesting sustained demand into the third quarter. These trends frame the passenger business as a key driver of the Group’s improving financial performance.

Cathay Pacific (0293.HK)’s own performance underpinned the Group’s overall passenger growth. The airline carried approximately 12% more passengers in June 2026 than in June 2025, supported by a roughly 6% increase in Available Seat Kilometres. For the first six months of 2026, Cathay Pacific’s passenger numbers were up about 17% compared with the same period in 2025. The combination of higher capacity and stronger demand points to an ongoing rebuild of the long‑haul and regional network.

Cargo operations deliver steady growth

Cathay Cargo handled around 145,000 tonnes of freight in June 2026, an increase of about 9% year on year. Available Freight Tonne Kilometres in June rose roughly 1%, indicating that volume growth outpaced the modest capacity expansion. For the first half of 2026, cargo tonnage was also up about 9% compared with the same period in 2025. These results show consistent demand for the Group’s cargo services across the period.

The divergence between cargo tonnage growth and capacity growth suggests improved utilisation of the freighter and bellyhold network. While detailed yield or revenue data has not yet been released, the tonnage and capacity statistics indicate a supportive backdrop for the cargo segment. This performance complements the strengthening passenger business and contributes to the Group’s overall earnings outlook for the first half of 2026.

HK Express adjusts capacity amid higher fuel costs

Low‑cost carrier HK Express carried more than 560,000 passengers in June 2026, a year‑on‑year decrease of about 4%. Available Seat Kilometres for HK Express were down around 7% in June. The airline reduced capacity by consolidating a small number of flights in order to mitigate higher jet fuel costs. This strategy aimed to balance cost pressures against demand while still supporting the Group’s broader network offering.

Despite the capacity reduction, HK Express remained a meaningful contributor to the Group’s total June passenger count. Its performance contrasts with the growth recorded by Cathay Pacific, illustrating differing tactical responses within the Group to market and cost conditions. Together, the premium and low‑cost operations form a combined portfolio that underpins the Group’s traffic growth and supports its improved profit expectations for the first half of 2026.