Cathay Group expects to report a strong first-half 2026 financial performance, driven by robust passenger demand, improved results from HK Express and stronger contributions from associated companies.
The Hong Kong-based airline group forecasts a consolidated profit attributable to shareholders of US$770 million to US$834 million for the six months ended June 30, 2026. That compares with a profit of approximately US$475 million during the same period last year.
The first-half result includes a one-time gain of about US$180 million from the dilution of Cathay’s equity interest in Air China.
Even excluding that exceptional gain, the group said earnings were supported by continued solid demand for Cathay Pacific, an improved performance from low-cost carrier HK Express and stronger contributions from associated companies.
Middle East effect on passengers’ flows
The results highlight the continued recovery in international travel through Hong Kong, with sustained demand from both leisure and business travelers supporting higher passenger volumes across the group’s airlines.
During the first six months of 2026, Cathay Pacific carried just over 16 million passengers, up 17.5% from the same period last year.
Chief Customer and Commercial Officer Lavinia Lau said travel demand remained stronger than is typical for early June, a period that has historically been quieter.
Instead, Hong Kong benefited from higher connecting traffic as travelers adjusted itineraries because of disruption in the Middle East. The Dragon Boat Festival holiday also boosted regional leisure demand.
“The outlook for the summer peak remains encouraging, particularly across our long-haul network,” Lau said.
Cathay has continued to restore capacity and add destinations, strengthening Hong Kong’s role as a regional aviation hub.
The positive outlook came despite elevated jet fuel prices during the first half of the year, demonstrating the strength of travel demand and the group’s improving operating performance.
Cathay noted that the figures are based on a preliminary review of its unaudited management accounts and remain subject to finalization. The group’s full interim financial results are scheduled to be released in August 2026.
