STRONGER air cargo demand has helped drive a profit for the Cathay Group of HK$8.8 billion for 2024.
The solid performance was helped by higher passenger volumes, lower fuel prices and cost efficiencies compared with the previous year. Profit in 2023 was HK$9.8 billion.
In a media release announcing the result it said the Cathay Cargo division performed very well in 2024, especially in the second half of the year with strong e-commerce demand being a key driver.
Overall, cargo tonnage was 11% higher and yield was about 3% higher than in 2023.
Cathay Group Chair Patrick Healy said the second consecutive year of solid financial performance was a testament to the efforts of the airline’s global teams.
“It has enabled us to complete buybacks, pay dividends to our shareholders, reward our people and commit substantial investments that will enhance the experience for our customers and benefit our home hub, Hong Kong.”
The release said that on the travel side of the business, Cathay Pacific and HK Express combined carried over 30% more passengers year on year.
“However, as more flights were added to the market, passenger yields (or average revenue generated per revenue passenger kilometre (RPK)) continued to normalise as expected,” the release said.
“Cathay Pacific saw a 12% decrease in yield, while for HK Express this was even more pronounced with yields down 23% year on year, reflecting the intense competition on regional routes.
“Cathay is committed to its dual-brand strategy to best serve customers with different needs, with Cathay Pacific as its premium full-service airline and HK Express as its low-cost airline.”
HK Express experienced short-term operational issues in 2024 that affected its earnings, with an average of five of its Airbus A320neo fleet grounded due to industry-wide Pratt & Whitney engine issues.
