Cathay Pacific Airways (0293) expects it to have a better financial performance this year than in 2024, despite the continuous losses made by budget airliner HK Express.
The group projects a “strong” financial result for the second half of the year, driven by increased capacity, solid passenger load factors and resilient cargo demand, according to a filing on Monday.
It is, however, partially offset by HK Express’ losses mainly due to various factors that negatively impacted travel demand to Japan.
Its associates, the majority of which are recognized three months in arrears, are expected to improve in the second half as compared to the first half of 2025, Cathay said, adding that it is also expected to book a non‑recurring gain of HK$900 million on a supplier settlement agreement in the second half.
The local flagship carrier Cathay Pacific carried 26 percent more passengers to more than 2.5 million in November, bringing the total passenger number in the first 11 months of the year to 26.1 million, up by 27 percent from a year ago.
The airline recorded a monthly load factor of 87 percent last month, the highest in the past two years, driven by robust demand on its Northeast Asia routes.
“The outlook for the Christmas travel peak remains strong”, Cathay said, adding that the demand for the Lunar New Year holiday is also “promising”.
HK Express carried close to 640,000 passengers in November 2025, an increase of 27 percent year-on-year.
Bookings across the airline’s network remain “healthy” for December, it said.
On the cargo front, Cathay Cargo carried 10 percent more cargo in November 2025 than a year ago, driven by solid exports from the city and the mainland, alongside growth across its Southeast Asia and South Asia, Middle East and Africa routes.
While overall demand started to ease in the middle of this month, core demand on its key trade lanes is expected to hold up well, Cathay said.
