Cathay Pacific reports lower profits in first half

Hong Kong’s flag carrier Cathay Pacific reported lower profit in the first half of 2024, despite higher revenues.  The company also indicated that it is investing over HK$100 billion to strengthen its hub in Hong Kong.

First half attributable profit was HK$3.61 billion, down 15.3 percent year over year.  “Our strong performance for the first six months of the year was primarily driven by the ongoing robust demand for travel, and the solid performance of our cargo business,” Chair Patrick Healy said in a statement.

The carrier attributed the first half profit drop to lower air fares, as global capacity restoration to pre-pandemic levels has resulted in normalizing yields and softening fares.  The carrier’s load factor fell to 82.4%. down from 87.2% last year.  This was due primarily to a massive capacity increase year over year, with Available Seat Kilometers up 42.7% while Revenue Passenger Kilometers

were up 34.9%.  The year to year recovery, and normalization of operations in key markets from Hong Kong, will likely see increasing load factors as the markets stabilize from  a recovery mode.