Cathay Pacific Profit Rises 9.5%, but Middle East Conflict Clouds Outlook
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Cathay Pacific Airways Ltd. reported a 9.5% increase in annual profit for 2025, but the carrier is bracing for turbulence stemming from the conflict in the Middle East, which has forced the suspension of key routes and driven jet-fuel prices sharply higher.
Hong Kong’s flag carrier said profit attributable to shareholders rose to HK$10.8 billion ($1.4 billion) in 2025 as revenue climbed 11.9% to HK$116.8 billion, according to a filing Wednesday. The results reflect a continued recovery in air travel, with Cathay Pacific and its subsidiary HK Express carrying more than 36 million passengers, up 27% from 2024.
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- Cathay Pacific's 2025 profit rose 9.5% to HK$10.8 billion on 11.9% higher revenue, carrying over 36 million passengers.
- The Middle East conflict forced route suspensions, doubled jet-fuel prices, increased costs, and shifted passenger flows through Hong Kong.
- HK Express’s loss widened to HK$996 million, but passenger revenue rose 6.7% and 2026 results improved early in the year.
- Cathay Pacific Airways Ltd.
- Cathay Pacific Airways Ltd. (国泰航空有限公司) reported a 9.5% annual profit increase in 2025, reaching HK$10.8 billion. Revenue climbed 11.9% to HK$116.8 billion, with over 36 million passengers carried. Despite geopolitical instability in the Middle East impacting routes and fuel prices, the airline sees new opportunities with rerouted passengers through its Hong Kong hub.
- HK Express
- HK Express is a subsidiary of Cathay Pacific Airways Ltd. Despite a wider loss of HK$996 million before net finance expenses and tax in 2025, primarily due to a decline in tourism to Japan, its passenger revenue increased by 6.7% to HK$6.4 billion. The airline's performance began improving significantly in early 2026.
- Hong Kong Airlines
- Hong Kong Airlines (HKA) is a local rival to Cathay Pacific. In response to rising jet fuel prices due to the Middle East conflict, HKA increased its fuel surcharges by up to 35% starting Thursday. Long-haul routes to North America and Europe saw about a 25% increase, reaching HK$739.
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