Cathay Pacific and HK Express combined carried over 30% more passengers year-on-year in 2024.
However, yields for Cathay Pacific declined by 12% and a “more pronounced” 23% for budget regional arm HK Express, reflecting the “intense competition” on regional routes in Asia.
HK Express also experienced “short-term operational issues” that affected its annual earnings, with an average of five of its Airbus A320neo fleet grounded due to industry-wide Pratt & Whitney engine issues.
Cathay Group, announcing an attributable profit of HK$9.9 billion in 2024, marginally up on the HK$9.8 billion profit achieved the previous year, expressed “confidence in the low-cost carrier business model of HK Express in the long term, with its commitment to offering low fares and more destination choices for customers”.
The company added: “A path to sustained profitability can be expected as the airline continues to grow and increase its efficiencies.
“HK Express is the world’s fastest-growing airline according to aviation analytics provider OAG, and was recently named one of the world’s top five low-cost airlines by Airline Ratings.”
The group’s annual results showcased “a solid financial performance” driven by stronger cargo demand, higher passenger volumes, lower fuel price and higher cost efficiencies compared with the previous year.
Although both airlines flew more, fuel was 9% less expensive. Cathay Panic passenger numbers rose 27% to almost 23 million while HK Express saw volumes rise by 47% to reach 6.1 million.
The result enabled Cathay to provide staff with more than 10 weeks of eligible pay in total in the form of discretionary bonus and profit sharing.
Cathay Group chair Patrick Healy said: “This second consecutive year of solid financial performance is a testament to the outstanding effort and dedication of our 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.”
He added: “We are excited about the future and remain firmly committed to strengthening the Hong Kong international aviation hub by boosting air travel and cargo capacity, and elevating our customer experience.
“Our financial performance gives us the confidence to commit to investing over HK$100 billion to coincide with the launch of the three-runway system [at Hong Kong International airport].
“We have already commenced taking delivery of more than 100 new-generation aircraft, as well as introducing new world-leading cabin interiors including Aria Suite and our all-new premium economy, new flagship lounges, and digital innovations.
“The state-of-the-art and fuel-efficient aircraft we are adding will expand and modernise our fleet, helping us to achieve our goal of net-zero carbon emissions by 2050. Decarbonising aviation is an important but challenging mission, and one that will require collaboration across the supply chain.
“We are also continuing to expand our global network, having already announced 11 additional destinations for 2025 with more to come. Together, Cathay Pacific and HK Express will operate passenger services to more than 100 destinations around the world within this year.
“We look forward to continuing to do our part to elevate Hong Kong’s status as a world-leading international aviation hub connecting Hong Kong, the Chinese mainland, and the world.”