Cathay Pacific Airways announced on Wednesday that it achieved its first net profit since 2019, leading to a bonus for its staff amounting to 7.2 weeks’ pay. The Hong Kong-based airline reported a net profit of HK$9.79 billion in 2023 and plans to expand its workforce by approximately 20%, hiring around 5,000 employees this year. Additionally, Cathay will pay its first dividend to ordinary shareholders since 2019.
The airline experienced a surge in demand following the relaxation of Covid-related travel restrictions, attributing to its robust financial performance. Revenue increased by 85% to HK$94.5 billion as post-pandemic travel demand persisted and ticket prices went up. Operating profit more than tripled to HK$15.1 billion, surpassing the previous record set in 2010.
Patrick Healy, Cathay Group chairman, expressed optimism stating that the airline has put the Covid-19 pandemic behind and is looking forward to growth. The stock price of Cathay surged over 6% following the announcement, reaching its highest point since February 2020.
After receiving a $5 billion pandemic-related rescue package from the Hong Kong government in 2020 and enduring a loss of HK$6.6 billion in 2022, Cathay aims to operate at 80% of pre-pandemic passenger flights by the second quarter of this year and return to 100% by the first quarter of 2025.
Despite facing challenges like stricter quarantine regulations and the need to recruit additional staff, Cathay is determined to progress. The carrier plans to order new mid-size wide-body aircraft while addressing the disruptions caused by staff shortages that led to flight cancellations and reductions. CEO Ronald Lam anticipates that as airlines worldwide increase their capacity, the imbalance between flight supply and travel demand will decrease, and airline yields will stabilize throughout 2024.
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