HONG KONG, 15 August 2023: The first half of 2023 delivered positive results for the Cathay Group, which reported an attributable profit of HKG4,268 million in the first half of 2023, compared with a first-half loss of HKD4,999 million during the same period in 2022.
Reporting on the results, the Cathay Group chair Peter Healy said rebuilding connectivity at the Hong Kong international aviation hub after the full reopening of the borders in Hong Kong and the Chinese Mainland was underway.
“As Hong Kong’s home carrier, our focus has been on adding more flights and destinations to cater to the growing demand for travel. We reached 50% of pre-pandemic passenger flight capacity levels covering 70 destinations in March and have continued to increase our passenger capacity since.
The declared profit included a one-off non-cash gain of HKD1.9 billion. The earnings per ordinary share in the first half of 2023 were HK61.5 cents (2022 first half: loss per ordinary share of HKD82.3 cents).
The airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HKD4,763 million in the first half of 2023. It compared with a loss of HKD2,516 million during the first half of 2202.
The results from associates, the majority of which are recognised as three months in arrears, reflected an attributable loss of HKD2,632 million (2022 first half: loss of HKD2,483 million), according to the chair’s statement.
Business performance
In the first half of 2023, Cathay Pacific’s passenger revenue increased by 1,109.5% to HKD25,013 million compared with the same period in 2022. Passenger flight capacity, measured in available seat kilometres (ASKs), increased by 1,111.3%, while traffic, measured in revenue passenger kilometres (RPKs), increased by 1,685.0%.
The airline carried 7.8 million passengers in the first half of 2023, an average of 43,184 per day, which was 2,233.1% more than in the first half of 2022. The load factor was 87.2% compared with 59.2% in the first half of 2022.
Costs increased from operating more flights. Non-fuel costs for the first half of 2023 increased by 53.5% to HKD24,639 million compared to 2022. Total fuel costs for Cathay Pacific (before the effect of fuel hedging) increased by HKD6,085 million (or 147.8%) compared with the first half of 2022.
Financial position
The group has been operating cash generative in 2023, and its available unrestricted liquidity balance stood at HKD28.9 billion as of 30 June 2023. On 6 June, the group announced that it would not need to use the HKD7.8 billion bridge loan facility extended by the Hong Kong SAR (HKSAR) Government before it expired on 8 June 2023. The group paid the deferred dividend of HKD1,524 million on the preference shares held by Hong Kong SAR (HKSAR) Government on 30 June 2023, bringing our dividend payments up to date.
Prospects
“While we are still only part way along our rebuilding journey, our results for the first six months of 2023 demonstrate that we are on the right track,” said Healy. “Building back connectivity at the Hong Kong international aviation hub remains our primary focus. We are on
track to achieve our target of 70% pre-pandemic passenger flight capacity levels covering 80 destinations by the end of 2023, and we are confident of reaching 100% by the end of 2024.”
“Our confidence in the long-term future of the Hong Kong international aviation hub with Cathay at its centre remains resolute. The Hong Kong hub has an important role to play in the country’s overall development under the National 14th Five-Year Plan. The Three-Runway System will be fully operational at Hong Kong International Airport by the end of 2024, and the huge potential of the Greater Bay Area as our extended home market gives us great optimism for the future. We will also continue to support promotional campaigns and mega events that put Hong Kong on the world stage and attract visitors to discover our home city.”
