Cathay Pacific Airways, one of the leading airlines in Hong Kong, announced a remarkable turnaround in its financial performance for the first half of this year. The lifting of Covid-19 restrictions contributed significantly to the surge in passenger revenue, leading to a net profit of HK$4.27 billion ($546.4 million). This is in stark contrast to the loss of HK$4.99 billion reported during the same period last year.
Impressive Revenue Growth
Cathay Pacific Airways witnessed a substantial growth in revenue, with figures soaring to HK$43.59 billion from HK$18.55 billion. This impressive surge highlights the airline’s resilience and ability to adapt to the changing market conditions.
Stock Buyback Plans
Buoyed by these positive results and a robust financial position, Cathay Pacific Airways has revealed plans to repurchase 50% of its preference shares before the end of this year. The redemption price for this buyback exceeds HK$9.75 billion. Additionally, the remaining 97.50 million preference shares are scheduled to be bought back by the end of July 2024, subject to the completion of the proposed capital reduction and prevailing business conditions at that time.
Cathay Pacific Airways remains steadfast in its goals and future plans. The company affirms its determination to achieve its target of operating at 70% of pre-pandemic passenger flight capacity levels, servicing 80 destinations by the close of 2023. Furthermore, it expresses confidence in reaching 100% capacity by the end of 2024.
Surge in Passenger Revenue
In a resounding development, Cathay Pacific Airways experienced a remarkable surge in passenger revenue during the first half of this year, amounting to HK$25.01 billion. This represents a staggering increase compared to HK$18.55 billion recorded during the same period last year. The passenger load factor also witnessed a commendable rise, reaching 87.2% compared to the previous year’s 59.2%.
Non-Cash Gain from Air China
As part of a one-off gain, Cathay Pacific Airways recognized a non-cash gain of HK$1.9 billion. This gain is attributed to the dilution of its interest in Air China following the successful completion of its A-shares offering in January.
Financial Stability and Outlook
Cathay Pacific Airways continues to maintain a positive cash flow throughout the year, reinforcing its financial stability. As of June, the company boasted an available unrestricted liquidity balance of HK$28.9 billion.
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