Cathay Pacific seems to have finally come out of the turmoil in which the airline had plunged since 2020. First with the political crisis in Hong Kong and China's control of the semi-autonomous territory; then with the Covid health crisis.
According to the company's management, the following damage was sustained the primary objective of rebuilding Cathay in the interests of our customers, staff, shareholders and Hong Kong's international aviation hub" .
Targets achieved by 2023
Cathay Pacific has achieved management's target of operating 70 % of pre-pandemic passenger flights by the end of 2023linking Hong Kong to approximately 80 destinations all over the world.
The good financial results achieved in 2023 were boosted by a significant increase in demand for travel after three years of pandemic-related restrictions. The imbalance between supply and demand worked in Cathay's favour, resulting in an increase in load factor of 12.1 points to 85.7% - compared with 73.6% in 2022.
The company has also returned to passenger numbers more in line with its business. Cathay welcomed 17.98 million passengers last year compared with 2.8 million the previous year.
The Cathay Group, including airlines, subsidiaries and associates, recorded a net profit of attributable profit of 1.145 billion euros in 2023 (compared with losses of €775 million in 2022).
For the current financial year, Cathay Pacific estimates that it will offer 80 % of its pre-pandemic passenger volume from this second quarter onwards. The company believes that with the increase in the number of flights and frequencies, the balance between supply and demand will normalise.
Hong Kong airport expansion gives Cathay wings
According to the company's management, the priority for 2024 is to ensure sustainable, high-quality growth. This will be driven in particular by full commissioning of the "three-runway system" at Hong Kong International Airport by the end of the year.
The first step was the inauguration of a third 3,800 metre runway in July 2022. This year will see the completion of the extension to Terminal 2 and the commissioning of the T2 satellite. It will be accompanied by a a new baggage handling system and an automated shuttle linking the satellite to the main terminal. This expansion opens up new growth prospects for the airport and Cathay Pacific.
Other developments could emerge during the year. In particular, there is talk of renewed interest fromAir China to strengthen its shareholding in Cathay. The Chinese company holds 29.9% of the capital.
Nothing is definitive yet, but if Air China were to become a majority shareholder in Cathay, some changes would be in order in the company's strategy.
