Cathay Pacific posts best first-half profit since 2010 on strong demand

Cathay Pacific Airways reported a 71% rise in first-half profit to HK$6.24 billion, driven by strong demand and a one-time gain, beating its forecast.

​Cathay Pacific Airways reported on Wednesday its ‌best first-half ​profit since 2010 as strong passenger and cargo demand and a one-time gain from its Air China stake offset higher fuel prices. The Hong Kong ‌flagship carrier's net profit rose 71% to HK$6.24 billion ($795.59 million) for the six months ended June 30, the second-highest in its history for the period.

The airline last month forecast a first-half profit in the range of ‌HK$6 billion to HK$6.5 billion. "Looking ahead, summer travel demand going into the third quarter is looking ‌strong," Cathay Chairman Guy Bradley said in a statement. "We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors."

Cathay's revenue climbed 25.3% to HK$68 billion, while its profit margin grew to 9.2% ⁠from 6.7%. The ​Hong Kong carrier has ⁠been among the biggest beneficiaries of Middle East disruptions as travellers rerouted away from Gulf hubs, though those tailwinds have faded ⁠in recent months as Gulf carriers restore flights and compete more aggressively on price.

Cathay's strong results come against a challenging ​cost backdrop as the broader aviation industry grapples with a spike in jet fuel prices due to ⁠the Iran war. Jet fuel prices are forecast to average $152 per barrel this year, nearly 70% above 2025 levels, according to the International ⁠Air ​Transport Association.

Cathay said its jet fuel costs had almost doubled in the second quarter relative to the first quarter, though the increase was partially offset by fuel surcharges. "We expect the impact of elevated ⁠fuel prices will continue for the rest of the year and we remain alert to the changing geopolitical ⁠and market situation," Bradley ⁠said.

Rival Singapore Airlines posted its first quarterly loss since 2022 in the three months ended June 30 despite record revenue, weighed down by high fuel prices ‌and losses from Air ‌India. ($1 = 7.8432 Hong Kong dollars)