Cathay Pacific Airways (0293) Analyst Briefing summary

Strategic progress and operational milestones

• Achieved 100% of pre-pandemic flight frequencies by January 2025, targeting 100 destinations within the year and carrying over two million passengers in multiple months for the first time since the pandemic.

• Significant network expansion with new long-haul and regional destinations for both premium and low-cost carriers.

• Workforce rebuilt with over 7,000 new hires in 2024, surpassing pilot requirements and reaching over 30,000 staff including 3,400+ pilots.

• Recognition for service quality, including a top-five Skytrax ranking and industry awards for new cabin products.

• Ongoing investment in customer experience, including new lounges in Beijing and New York, and refurbishment of Hong Kong lounges, with enhancements planned for The Wing in 2025/26.

Fleet and investment plans

• Over HKD 100 billion investment planned over seven years, primarily in fleet renewal and expansion, with 100+ new aircraft deliveries from 2024.

• Delivery of 21 Boeing 777-9 aircraft postponed to 2026, with additional orders for A320/A321neo, A350 freighters, and A330neo.

• Continued rollout of new cabin products, including Aria Suite and premium economy, with further retrofits planned.

Financial performance and outlook

• Available seat kilometers increased by 31.5% and passenger numbers by 27% year-on-year to November 2024, with revenue passenger kilometers up 26.7%.

• Recognized as the world's fastest-growing airline of 2024, reaching 165% of 2019 levels by end of November 2024.

• Cargo capacity up 9% and cargo carried up 11%, with available tonne kilometres up 8.9% and cargo carried up 10.9%, driven by e-commerce demand.

• Strong second half 2024 projected, with elevated cargo demand and lower fuel prices supporting results, though passenger yields are normalising.

• Liquidity levels returning to pre-pandemic norms, with major COVID-era financial instruments repaid or repurchased.