Cathay Group doubles first-half profit, announces dividend and targets 150 aircraft expansion

The Cathay Group has reported a strong first-half 2026 performance, posting an attributable profit of HK$6.2 billion, up from HK$3.7 billion in the same period last year, as robust passenger and cargo demand outweighed the impact of sharply higher fuel prices.

The result enabled the Hong Kong-based airline group to declare a first interim dividend of HK26 cents per ordinary share, representing a 30% increase over the interim dividend paid in 2025 and totalling HK$1.6 billion.

Part of the reported profit included HK$1 billion in non-recurring gains, largely resulting from the dilution of Cathay’s shareholding in Air China, although the Group also delivered significantly stronger underlying operational performance.

Passenger and cargo demand remain strong

Cathay Group Chairman Guy Bradley said the improved results reflected continued strength across the business.

“Our result was positively impacted by ongoing underlying demand for Cathay Pacific and Cathay Cargo, improved performance from HK Express, and stronger contributions from associates,” he said.

The Group carried more passengers and freight and operated more flights than during the first half of 2025. However, Bradley acknowledged that the second quarter became considerably more challenging after conflict in the Middle East caused jet fuel prices to surge.

“Our jet fuel costs almost doubled from the first quarter to the second quarter,” he said, adding that the Group’s ability to remain strongly profitable demonstrated the resilience built into the business in recent years.

Cathay’s airlines and subsidiaries generated HK$4.9 billion in attributable profit, compared with HK$3.8 billion a year earlier, while associated companies contributed a profit of HK$410 million, reversing a loss recorded during the first half of 2025.

HK$150 billion investment programme

Cathay also reaffirmed its long-term growth strategy, announcing that it has already committed around HK$150 billion to investments in new aircraft, cabin upgrades, airport lounges and digital innovation.

Looking ahead, the Group aims to add 150 new aircraft over the next decade while expanding its global network to 150 destinations, subject to favourable market conditions.

The fleet expansion will support continued growth at Hong Kong International Airport while strengthening the city’s role as a leading global aviation hub.

New cabins and lounges

Cathay Pacific will continue introducing its latest onboard products, including additional Aria Suite Business Class installations on the Boeing 777-300ER, together with new Premium Economy and refreshed Economy cabins.

By the end of this year, the airline also plans to introduce its new Aria Studio Business Class and redesigned Economy cabin on regional Airbus A330 aircraft. Economy Class on the Airbus A321neo will also be reconfigured to provide passengers with additional legroom.

On the ground, Cathay recently reopened The Wing First lounge in Hong Kong and plans to open its first-ever lounge in New York JFK Terminal 6 later this year. Redesigned lounges at The Wing Business in Hong Kong and Tokyo Narita are scheduled to follow in 2027.

Meanwhile, Cathay Cargo continues to expand its freighter fleet, increasing its order for Airbus A350F aircraft to eight while also leasing an A330 Passenger-to-Freighter (A330P2F) conversion for Air Hong Kong, supporting further growth in the cargo business.