Cathay is investing over HK$100 billion to strengthen Hong Kong’s international aviation hub status
The Cathay Group (Cathay) has dedicated greater than HK$100 billion in investments over the subsequent seven years as a part of its daring technique to additional elevate its buyer expertise, and strengthen Hong Kong’s worldwide aviation hub standing driving on the Three-Runway System. This encompasses main investments in its fleet, cabin merchandise, lounges, and digital and sustainability management because it units its sights on rising for its prospects, its folks and its house, Hong Kong.
Cathay Group Chair Patrick Healy mentioned: “With the Three-Runway System quickly to propel Hong Kong’s aviation sector into a brand new age, the approaching years are going to be an extremely thrilling time for Hong Kong and for Cathay with ample new alternatives to develop.
“As town’s house airline, we’re a key contributor in direction of the longer term success of the Hong Kong worldwide aviation hub. Our substantial investments additional exhibit our unwavering dedication to fostering Hong Kong’s ongoing financial growth.
“With over HK$100 billion being invested in our fleet, cabin merchandise, airport lounges and extra, we’re firmly turning the web page and embarking on a daring new technique for the longer term, not simply in scope but additionally in high quality. Cathay is coming into an thrilling new period underpinned by our dedication to develop into one of many world’s best service manufacturers.”
Spreading its wings
This funding consists of right this moment’s announcement of Cathay’s buy of 30 Airbus A330-900 plane with the correct to accumulate an extra 30 plane in future. These new regional widebody plane are anticipated to be delivered from 2028 and can be a part of the Cathay Pacific fleet principally serving locations in Asia.
Cathay now has greater than 100 new-generation plane in its supply pipeline, with the correct to accumulate over 80 further plane in future. With orders protecting narrowbody, regional widebody, long-haul widebody, and enormous freighter plane, these investments promise to modernise and broaden Cathay’s fleet, taking it to the subsequent stage. Moreover, the improved fuel-efficiency they supply will play an vital function in lowering carbon emissions and serving to Cathay obtain its carbon net-zero by 2050 objective.
Cathay Pacific, the premium airline inside the Group, can be delighting prospects with new cabin merchandise launching in every of the approaching three years. This begins with the airline’s all-new Aria Suite, Premium Financial system and refreshed Financial system coming to its redesigned Boeing 777-300ER plane later this yr. A world-leading First-class expertise onboard its 777-9s will launch in 2025, adopted by a model new cabin and flat-bed Enterprise class product on its present A330 plane in 2026.
Along with new cabin merchandise, complimentary Wi-Fi can be progressively supplied to Enterprise class prospects and Diamond members within the coming months. This may increase the airline’s ongoing investments in eating and inflight leisure to make the shopper expertise actually distinctive.
On the bottom, Cathay Pacific can be launching newly designed flagship lounges in Hong Kong, Beijing and, for the primary time, a devoted lounge in New York, over the subsequent three years.
A strong rebuilding journey
Right now’s funding announcement comes as Cathay reviews its interim outcomes for 2024. As a Group, Cathay reported an attributable revenue of HK$3.6 billion within the first half of 2024. This compares with a revenue of HK$4.3 billion within the first half of 2023.
Cathay’s airways and subsidiaries, excluding distinctive objects, reported an attributable revenue of HK$3.8 billion within the first half of the yr, versus a revenue of HK$4.8 billion within the first half of 2023, with the year-on-year discount principally attributable to the normalisation of ticket costs. In the meantime, the outcomes from associates, nearly all of that are recognised three months in arrears, mirrored an attributable lack of HK$342 million, in contrast with a lack of HK$2.6 billion within the first half of 2023.
Eighteen months on from the beginning of its rebuilding journey, Cathay has totally repaid the HK$19.5 billion choice shares funding and paid a complete of HK$2.44 billion in dividends to the Hong Kong SAR (HKSAR) Authorities over its holding interval. In the meantime, Cathay introduced a primary interim dividend to atypical shareholders totalling roughly HK$1.3 billion. That is after Cathay paid its atypical shareholders HK$2.8 billion in dividends for 2023.
All this firmly demonstrates the success of Cathay’s rebuilding journey. All the plane that have been in long-term parking have returned, and Cathay stays on monitor to achieve 100% of its pre-pandemic flights inside the first quarter of 2025 as deliberate. To help that tempo of progress, Cathay is making good progress with rising its Group headcount by 5,000 folks this yr to a complete of 29,000.
Cathay strives to construct Hong Kong as a global aviation hub that connects folks to probably the most thrilling locations on the earth. Mixed, the 2 airways Cathay Pacific and HK Specific presently fly to greater than 80 passenger locations throughout the globe, anticipated to rise to 100 inside 2025. Thus far in 2024, 10 new locations have already been introduced, eight of which have commenced providers with Riyadh and Cairns coming later this yr.
Excellence in customer support additionally stays a cornerstone of the Cathay Pacific expertise, with the airline this yr named among the many high 5 greatest airways on the earth in famend trade rankings, and its Financial system class voted the World’s Greatest.
Cathay is assured in the way forward for Hong Kong and is dedicated to contributing in direction of its success as a global aviation hub. With a transparent imaginative and prescient to maneuver past, Cathay goals to convey pleasure to its folks, prospects, shareholders and group.