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 following seven years as a part of its daring technique to additional elevate its buyer expertise, and strengthen Hong Kong’s international aviation hub status using 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 clients, its individuals and its residence, 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 the town’s residence airline, we’re a key contributor in the direction of the longer term success of the Hong Kong international aviation hub. Our substantial investments additional reveal our unwavering dedication to fostering Hong Kong’s ongoing financial growth.
“With over HK$100 billion being invested in our fleet, cabin products, airport lounges and more, we are firmly turning the page and embarking on a bold new strategy for the future, not just in scope but also in quality. Cathay is entering an exciting new era underpinned by our determination to become one of the world’s greatest service brands.”
Spreading its wings
This funding contains at this time’s announcement of Cathay’s buy of 30 Airbus A330-900 plane with the correct to purchase a further 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 purchase over 80 further plane in future. With orders overlaying narrowbody, regional widebody, long-haul widebody, and huge freighter plane, these investments promise to modernise and develop Cathay’s fleet, taking it to the following stage. Furthermore, the improved fuel-efficiency they supply will play an essential position in decreasing carbon emissions and serving to Cathay obtain its carbon net-zero by 2050 aim.
Cathay Pacific, the premium airline throughout the Group, can also be delighting clients with new cabin merchandise launching in every of the approaching three years. This begins with the airline’s all-new Aria Suite, Premium Economy and refreshed Economy coming to its redesigned Boeing 777-300ER plane later this 12 months. A world-leading First class expertise onboard its 777-9s will launch in 2025, adopted by a model new cabin and flat-bed Business class product on its present A330 plane in 2026.
In addition to new cabin merchandise, complimentary Wi-Fi will probably be progressively provided to Business class clients and Diamond members within the coming months. This will increase the airline’s ongoing investments in eating and inflight leisure to make the shopper expertise actually distinctive.
On the bottom, Cathay Pacific will probably be launching newly designed flagship lounges in Hong Kong, Beijing and, for the primary time, a devoted lounge in New York, over the following three years.
A stable rebuilding journey
Today’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 12 months, 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. Meanwhile, 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) Government over its holding interval. Meanwhile, Cathay introduced a primary interim dividend to unusual shareholders totalling roughly HK$1.3 billion. This is after Cathay paid its unusual shareholders HK$2.8 billion in dividends for 2023.
All this firmly demonstrates the success of Cathay’s rebuilding journey. All of the plane that had been in long-term parking have returned, and Cathay stays on observe to attain 100% of its pre-pandemic flights throughout the first quarter of 2025 as deliberate. To help that tempo of progress, Cathay is making good progress with growing its Group headcount by 5,000 individuals this 12 months to a complete of 29,000.
Cathay strives to construct Hong Kong as an international aviation hub that connects individuals to probably the most thrilling locations on this planet. Combined, the 2 airways Cathay Pacific and HK Express at present fly to greater than 80 passenger locations throughout the globe, anticipated to rise to 100 inside 2025. So far in 2024, 10 new locations have already been introduced, eight of which have commenced providers with Riyadh and Cairns coming later this 12 months.
Excellence in customer support additionally stays a cornerstone of the Cathay Pacific expertise, with the airline this 12 months named among the many high 5 greatest airways on this planet in famend trade rankings, and its Economy class voted the World’s Best.
Cathay is assured in the way forward for Hong Kong and is dedicated to contributing in the direction of its success as an international aviation hub. With a transparent imaginative and prescient to transfer past, Cathay goals to deliver pleasure to its individuals, clients, shareholders and group.