Cathay Pacific Airways (00293) announces profit growth, expecting shareholders' comprehensive profit for the first half of the year to be around HK$6 to 6.5 billion. Both passenger and freight volumes have increased by 9% year-on-year.

CATHAY PAC AIR (00293) has announced that in June, despite the high aviation fuel prices, the group continued to maintain growth momentum. CATHAY PAC AIR and Hong Kong Express carried over 3.1 million passengers in the month, with Cathay Cargo carrying approximately 145,000 tons of cargo, representing a 9% increase compared to the same period last year. "At the same time, we continue to strengthen network connections for our customers. Hong Kong Express recently launched a new route between Hong Kong and Wuxi, further expanding the group's network in mainland China." CATHAY PAC AIR saw a 12% increase in passenger volume in June 2026 compared to the same month in 2025, with available seat kilometers increasing by 6% annually. In the first six months of 2026, passenger volume increased by 17% compared to the same period in 2025. Liu Kaishi said, "Historically, passenger demand tends to be soft in early June, but due to the situation in the Middle East, there was an increase in transit passengers through Hong Kong, maintaining a high load factor. Additionally, the long weekend holiday for the Dragon Boat Festival in mid-June stimulated outbound travel demand from Hong Kong to various short-haul destinations. Towards the end of June, the return of students from long-haul overseas markets supported passenger demand. Meanwhile, demand for business and high-end leisure travel continued to drive demand for premium cabins. "We remain optimistic about the prospects for the peak summer travel season, particularly for long-haul routes. Demand for short-haul destinations departing from Hong Kong also remains robust, especially from mainland China and Northeast Asia." Cathay Cargo saw a 9% increase in cargo volume in June 2026 compared to the same month in 2025, with available cargo ton kilometers increasing by 1% annually. In the first six months of 2026, cargo volume increased by 9% compared to the same period last year. Liu Kaishi said, "Cargo volume in June showed steady year-on-year growth, with strong demand for freight from mainland China to Southeast Asia, and stable demand within Southeast Asia. Demand for freight to mainland China and Hong Kong remained resilient, and specialized freight solutions continued to perform well, with semiconductor and pharmaceutical transportation driving growth in the Cathay - Special Cargo and Cathay - Pharma categories. Demand for Cathay Priority Shipping in the Hong Kong, Southeast Asia, and America markets also remained strong. Looking ahead, we expect robust demand for freight across the entire network. We will closely monitor the new tariff policies on low-value imports from Europe and their potential impact on e-commerce freight demand." Hong Kong Express carried over 560,000 passengers in June 2026, a 4% decrease compared to the same month in 2025, with available seat kilometers falling by 7% annually. In the first six months of 2026, passenger volume increased by 10% compared to the same period last year. Liu Kaishi said, "Passenger demand at Hong Kong Express slowed slightly in June, consistent with recent years. However, performance in some markets was strong, with passenger load factors exceeding 85% on routes to mainland China, the Philippines, and Thailand, representing double-digit percentage point growth compared to the same month last year. In June, Hong Kong Express integrated a small number of flights as per the plan announced in April 2026 to mitigate the impact of rising fuel costs, resulting in a slight reduction in overall capacity compared to the same period last year. Looking ahead to the peak summer travel season, the booking situation for July is better than the same period last year." The group expects to record a comprehensive profit attributable to shareholders of approximately HK$6 to 6.5 billion for the six-month period ending on June 30, 2026, with around HK$1.4 billion coming from the dilution of equity interest in Air China held by the group, as disclosed in the company's announcement of passenger and cargo volume data in May 2026 (dated June 23, 2026). In comparison, the group recorded a profit attributable to shareholders of HK$3.7 billion for the six-month period ending on June 30, 2025. The group's performance in the first half of 2026 was also supported by continued strong demand for CATHAY PAC AIR and Cathay Cargo, improved performance of Hong Kong Express, and better profitability contributions from associated companies.