The Cathay Group has committed more than HK$100 billion in investments over the next seven years as part of its bold strategy to further elevate its customer experience, and strengthen Hong Kong’s international aviation hub status riding on the Three-Runway System. This encompasses major investments in its fleet, cabin products, lounges, and digital and sustainability leadership as it sets its sights on growing for its customers, its people and its home, Hong Kong.
Cathay Group Chair Patrick Healy said: “With the Three-Runway System soon to propel Hong Kong’s aviation sector into a new age, the coming years are going to be an incredibly exciting time for Hong Kong and for Cathay with ample new opportunities to grow.
“As the city’s home airline, we are a key contributor towards the future success of the Hong Kong international aviation hub. Our substantial investments further demonstrate our unwavering commitment to fostering Hong Kong’s ongoing economic development.
“With over HK$100 billion being invested in our fleet, cabin products, airport lounges and more, we are firmly turning the page and embarking on a bold new strategy for the future, not just in scope but also in quality. Cathay is entering an exciting new era underpinned by our determination to become one of the world’s greatest service brands.”
Spreading its wings
This investment includes today’s announcement of Cathay’s purchase of 30 Airbus A330-900 aircraft with the right to acquire an additional 30 aircraft in future. These new regional widebody aircraft are expected to be delivered from 2028, and will join the Cathay Pacific fleet principally serving destinations in Asia.
Cathay now has more than 100 new-generation aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft in future. With orders covering narrowbody, regional widebody, long-haul widebody, and large freighter aircraft, these investments promise to modernise and expand Cathay’s fleet, taking it to the next level. Furthermore, the enhanced fuel efficiency they provide will play an important role in reducing carbon emissions and helping Cathay achieve its carbon net-zero by 2050 goal.
Cathay Pacific, the premium airline within the Group, is also delighting customers with new cabin products launching in each of the coming three years. This begins with the airline’s all-new Aria Suite, Premium Economy and refreshed Economy coming to its redesigned Boeing 777-300ER aircraft later this year. A world-leading First class experience onboard its 777-9s will launch in 2025, followed by a brand new cabin and flat-bed Business class product on its existing A330 aircraft in 2026.
In addition to new cabin products, complimentary Wi-Fi will be progressively offered to Business-class customers and Diamond members in the coming months. This will augment the airline’s ongoing investments in dining and inflight entertainment to make the customer experience truly exceptional.
On the ground, Cathay Pacific will be launching newly designed flagship lounges in Hong Kong, Beijing and, for the first time, a dedicated lounge in New York, over the next three years.
A solid rebuilding journey
This investment announcement comes as Cathay reports its interim results for 2024. As a Group, Cathay reported an attributable profit of HK$3.6 billion in the first half of 2024. This compares with a profit of HK$4.3 billion in the first half of 2023.
Cathay’s airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HK$3.8 billion in the first half of the year, versus a profit of HK$4.8 billion in the first half of 2023, with the year-on-year reduction principally attributable to the normalisation of ticket prices. Meanwhile, the results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$342 million, compared with a loss of HK$2.6 billion in the first half of 2023.
Eighteen months on from the start of its rebuilding journey, Cathay has fully repaid the HK$19.5 billion preference shares investment and paid a total of HK$2.44 billion in dividends to the Hong Kong SAR (HKSAR) Government over its holding period. Meanwhile, Cathay announced a first interim dividend to ordinary shareholders totalling approximately HK$1.3 billion. This is after Cathay paid its ordinary shareholders HK$2.8 billion in dividends for 2023.
All this firmly demonstrates the success of Cathay’s rebuilding journey. All of the aircraft that were in long-term parking has returned, and Cathay remains on track to reach 100% of its pre-pandemic flights within the first quarter of 2025 as planned. To support that pace of growth, Cathay is making good progress with increasing its Group headcount by 5,000 people this year to a total of 29,000.
Cathay strives to build Hong Kong as an international aviation hub that connects people to the most exciting places in the world. Combined, the two airlines Cathay Pacific and HK Express currently fly to more than 80 passenger destinations across the globe, expected to rise to 100 by 2025. So far in 2024, 10 new destinations have already been announced, eight of which have commenced services with Riyadh and Cairns coming later this year.
Excellence in customer service also remains a cornerstone of the Cathay Pacific experience, with the airline this year named among the top five best airlines in the world in renowned industry rankings, and its Economy class voted the World’s Best.
Cathay is confident in the future of Hong Kong and is committed to contributing towards its success as an international aviation hub. With a clear vision to move beyond, Cathay aims to bring pride to its people, customers, shareholders and community.
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