Cathay Pacific Sees H1 Profit Surge on Strong Travel Demand

Cathay Pacific Airways (HK:0293) expects a significant jump in first-half 2026 earnings, supported by robust passenger demand, resilient cargo operations, and a one-time investment gain, despite higher fuel costs driven by tensions in the Middle East.

The Hong Kong-based airline said profit attributable to shareholders for the six months ended June 30 is projected to reach between HK$6 billion and HK$6.5 billion ($770 million to $840 million). That compares with HK$3.7 billion reported during the same period a year earlier, highlighting the carrier’s strong financial recovery.

Cathay Pacific said the earnings outlook includes a HK$1.4 billion gain from the sale of its stake in Air China, which provided an additional boost to first-half results.

Operational performance also improved across key metrics. Passenger traffic remained strong, with the airline carrying 17.5% more travelers than a year ago. The load factor, which measures seat occupancy, increased by 2.7 percentage points to 87.5%, while revenue passenger kilometers climbed 15.3%, reflecting sustained travel demand across its network.

The airline benefited from Hong Kong’s growing role as a major international transit hub. Disruptions to air travel caused by the Middle East conflict redirected passenger traffic through the city, supporting both Cathay Pacific’s passenger and cargo businesses. Increased cargo demand also contributed to the carrier’s solid performance during the period.

Cathay Pacific said demand for flights between Hong Kong and short-haul destinations in mainland China and Northeast Asia remained healthy, as travelers continued to favor more affordable regional trips. The airline also reported a positive outlook for the upcoming summer travel season, with bookings on its long-haul routes showing encouraging momentum.

Although rising oil prices linked to the U.S.-Israel conflict with Iran pushed jet fuel costs higher, the airline said strong travel demand and improved operating performance helped offset the impact. Cathay Pacific’s latest outlook underscores the continued recovery of the aviation sector and the resilience of demand despite geopolitical uncertainty and higher operating expenses.