What Happened to Cathay Pacific Airways Limited?

Cathay Pacific Airways, founded in Hong Kong in 1946 by Roy Farrell and Sydney de Kantzow, quickly established itself as a key regional carrier. The airline expanded its network significantly in its early decades, acquiring rival Hong Kong Airways in 1959 and entering the jet age with its first Convair 880 in 1962. The introduction of the Boeing 747 in 1979 marked a pivotal moment, transforming Cathay Pacific into a global contender with long-haul capabilities, including direct flights to London from 1980.

The late 20th and early 21st centuries saw Cathay Pacific solidify its position as a major international airline, becoming a founding member of the Oneworld Alliance in 1999 and relocating its operations to the new Hong Kong International Airport in 1998. However, the airline also faced significant challenges, including the SARS outbreak in 2003, a major data breach in 2018, and the socio-political unrest in Hong Kong in 2019, which severely impacted passenger numbers and profitability.

The COVID-19 pandemic delivered an unprecedented blow, leading to substantial losses and a HK$39 billion recapitalisation package from the Hong Kong government in 2020. The airline operated a significantly reduced schedule, focusing heavily on cargo operations to sustain itself. The recovery was gradual, with Cathay Pacific reporting a loss of HK$6.623 billion in 2022. However, 2023 marked a turning point, with the airline achieving its first profitable year since 2019, reporting an attributable profit of HK$9.789 billion, driven by surging travel demand.

Cathay Pacific's recovery accelerated significantly into 2024 and 2025. By January 2025, the Cathay Group, including HK Express, had rebuilt its operations to 100% of pre-pandemic flight capacity and served over 100 destinations worldwide. The airline reported a strong attributable profit of HK$9.888 billion in 2024, followed by an even stronger HK$10.828 billion in 2025, marking its third consecutive year of solid financial performance. This robust performance allowed the company to announce a total dividend of HK$0.84 per share for 2025, the first since 2019. Cathay Pacific has also made substantial investments, committing over HK$100 billion (approximately US$12.8 billion) through 2031 for fleet modernization, including orders for new Boeing 777-9s and Airbus A330-900s, and enhancing customer experience with new cabin products like the Aria Suite Business class and upcoming First class on Boeing 777-9s in 2027.

As of April 2026, Cathay Pacific continues its growth trajectory, celebrating its 80th anniversary and planning to increase passenger capacity by around 10% in 2026. The airline is expanding its network, including the relaunch of non-stop flights to Seattle from March 2026. However, it faces immediate challenges from rising jet fuel costs, leading to a temporary 2% reduction in Cathay Pacific's scheduled passenger flights and a 6% cut for HK Express between mid-May and June 2026. Despite these short-term adjustments, Cathay Pacific remains committed to its long-term strategy, focusing on sustainability initiatives, such as significant investments in Sustainable Aviation Fuel (SAF) and reducing single-use plastics, aiming for 1.5 items per passenger by mid-2026.