Strategic Portfolio Shift: Qatar Airways Exits Cathay Pacific with $896M Stake Sale

Qatar Airways is ending to its 8 years long ownership in Cathay Pacific by selling its full 9.6% holding back to the carrier for about $896 million.

The state-owned airline from Doha arranged the sale directly with Cathay, which agreed to buy back the shares at $1.40 each (HK$10.8374) — roughly 5% lower than the stock’s price before the announcement. The deal will move forward once it gains approval from Cathay’s independent shareholders during their next meeting.

Qatar Airways originally bought its stake in 2017 from Kingboard Chemical Holdings and other investors for around $662 million, becoming Cathay’s third-largest shareholder at the time. The sale now represents a return of about 35% on that initial investment. Cathay has stated that the buyback will be financed through its existing cash reserves and available credit lines.

Group Chief Executive Badr Mohammed Al-Meer of Qatar Airways noted that the divestment aligns with the airline’s broader effort to manage its portfolio strategically and focus on sustainable, long-term growth after a strong financial period.

Cathay Pacific Chairman Patrick Healy said the buyback demonstrates the company’s confidence in its future prospects. He added that Cathay remains committed to expanding and modernizing its operations, with plans to invest more than HK$100 billion over the next seven years in aircraft, cabin improvements, and lounge upgrades.

After the repurchased shares are cancelled, Cathay’s ownership structure will shift — Swire Pacific’s stake will rise to 47.7%, while Air China will hold 31.8%. The announcement lifted market sentiment, sending Cathay’s shares up by 4.8%, while Air China and Swire Pacific shares increased by 4% and over 1%, respectively.

Both Cathay and Qatar Airways, members of the Oneworld alliance, reaffirmed their commitment to continuing cooperation through existing alliance and codeshare agreements.

The move fits within Qatar Airways’ strategy of maintaining a diversified global investment portfolio, which includes significant holdings in International Airlines Group (25%), China Southern Airlines (5%), and Virgin Australia (25%). The airline is also finalizing a 49% stake in RwandAir as part of its broader expansion strategy.