Cathay Group Reports Strong 2024 Financial Results

‍DALLAS — Cathay Group (CX) reported strong financial results for 2024, marking its second consecutive year of profitability.

The airline Group reported an attributable profit of HK$9.9 billion (US$1.26 billion) in 2023, compared to HK$9.8 billion (US$1.25 billion) in 2023. Stronger cargo demand, higher passenger volumes, lower fuel prices, and better cost efficiencies drove the positive results.

Cargo operations also bolstered the Group's strong financial performance. The carrier benefited from e-commerce shipments, recording an 11% year-on-year rise in cargo tonnage against 2023. Cargo yields increased 3% year-on-year, underlining CX's strategic position as a significant freight player in the Asia-Pacific market.

Traffic Grows as Market Expands

CX and its ultra-low-cost subsidiary HK Express (UO) carried over 30% more passengers in 2024 compared to the first month of 2023. However,  rising market capacity translated into yield normalization. CX announced a 12% drop in passenger yield, as UO recorded a steeper 23% decline, indicative of increased competition on regional routes.

Despite struggles across the broader industry, CX remains focused on its dual-brand approach, with CX positioned as a full-service premium carrier and UO as a low-cost option. Except for five of UO’s Airbus A320neo aircraft, which were grounded due to engine-related issues, CX still retains confidence in the viability of its low-cost model in the longer term. 

Profits Supported by Lower Fuel Prices

Fuel prices were 9% lower, contributing to a lower overall cost of operations for CX. Despite the increase in capacity, CX was able to extract more cost efficiencies from operations, leading to a 4.5% decrease in ex-fuel cost per available ton kilometer (ATK).

The airline also reported enhanced financial contributions from the airline's subsidiaries, notably CA and Air China Cargo. Having made a HK$1.6 billion (US$204 million) loss in 2023, these entities returned a HK$288 million (US$37 million) profit in 2024, mirroring a broader upturn in China’s aviation industry.

Capital Management, Dividends

In July 2024, CX fully repurchased its share buyback with preference shares amounting to HK$9.8 billion (US$1.25 billion) from the Hong Kong SAR Government. During the holding period, CX also paid the government HK$4 billion (US$510 million) in dividends and repurchased HK$6.7 billion (US$860 million) of guaranteed convertible bonds.

The CX also reported total dividends of HK$ 4.4 billion (~ US$560 million) for 2024, including a second interim dividend of 49 cents per share for shareholders.

100 More Aircraft, 100 New Destinations

Cathay Group is spending more than HK$100 billion (US$12.7 billion) to expand its fleet and enhance customer experience. The airline is taking delivery of over 100 new-generation aircraft, including:

• Redesigned Aria Suite Business Class cabins
• An all-new Premium Economy experience
• Transformed signature club lounges
• Improved digital services

The group is also expanding its global network, announcing 11 new destinations for 2025. By the end of the year, CX and UO will provide passenger services to more than 100 cities worldwide.

Commitment to Hong Kong’s Aviation Hub

Cathay Group remains a key driver in reinforcing Hong Kong as a world-class aviation hub. As part of its broader expansion that coincides with the advent of the Three-Runway System at Hong Kong International Airport (HKG), it is projected to enhance passenger and cargo capacity.

Chairman Patrick Healy noted CX’s commitment to reinforcing Hong Kong’s connectivity:

“We look forward positively to the future and are steadfastly committed to reinforcing Hong Kong’s international aviation hub.” “Our strong financial performance allows us to expand our fleet, enhance customer experience, and improve operational efficiency.”

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