Cathay Group reports rise in traffic via Hong Kong due to Middle East conflict

Cathay Group expects first half profits to almost double on the back of continued “solid demand” as traffic increased via Hong Kong last month due to the Middle East conflict.

 

The owner of Hong Kong-based Cathay Pacific and regional carrier HK Express expects to report a profit of up to HK$6.5 billion (£619 million) compared to HK$3.7 billion (£352 million) in the first six months of last year.

 

The results for the period to June 30 include a HK$1.4 billion (£133 million) gain from partial disposal of a stake in Air China.

 

“The group’s first half 2026 results were also positively impacted by continued solid demand for Cathay Pacific and Cathay Cargo, improved performance from HK Express, and stronger contributions from associates,” the company said.

 

Full results for the first six months of 2026 are due to be published next month.

 

Meanwhile, traffic figures for June showed a 9% year on year rise in combined passenger carryings to more than 3.1 million.

 

Chief customer and commercial officer Lavinia Lau said: “The Cathay Group continued our growth momentum in June, although jet fuel prices remained elevated.”

 

Cathay Pacific carried 12% more passengers than in June 2025 as capacity rose by 6%.

 

The number of passengers increased by 17% in the first six months compared with the same period in 2025. 

 

Lau said: “The start of June has historically been a softer period for passenger travel demand, but this year load factors remained elevated, amplified by increased traffic through Hong Kong due to the Middle East situation.

 

“This was further supported by the mid-month Dragon Boat Festival long weekend, which drove healthy outbound demand from Hong Kong to various short-haul destinations, followed by inbound student traffic from long-haul markets in the latter half of the month. 

 

“Demand in our premium cabins also remained robust driven by strong corporate and premium leisure travel.”

 

She added: “The outlook for the summer peak remains encouraging, particularly across our long-haul network. 

 

“Meanwhile, demand from Hong Kong to short-haul destinations continues to be robust, with the Chinese mainland and other destinations in northeast Asia being particularly popular.”

 

However, HK Express saw capacity trimmed in the month with the consolidation of a small number of flights to mitigate part of increased fuel costs.

 

“Turning to the summer travel peak, bookings for July are ahead of last year,” Lau noted.