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 prospects, its individuals and its house, Hong Kong.
Cathay Group Chair Patrick Healy stated: “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 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 consists of at the moment’s announcement of Cathay’s buy of 30 Airbus A330-900 plane with the proper 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 proper to purchase over 80 further plane in future. With orders masking narrowbody, regional widebody, long-haul widebody, and enormous freighter plane, these investments promise to modernise and broaden Cathay’s fleet, taking it to the following degree. Furthermore, the improved fuel-efficiency they supply will play an essential function in lowering carbon emissions and serving to Cathay obtain its carbon net-zero by 2050 aim.
Cathay Pacific, the premium airline inside the Group, can also 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 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 current A330 plane in 2026.
In addition to new cabin merchandise, complimentary Wi-Fi will likely be progressively provided to Business class prospects and Diamond members within the coming months. This will increase the airline’s ongoing investments in eating and inflight leisure to make the client expertise really distinctive.
On the bottom, Cathay Pacific will likely 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 strong rebuilding journey
Today’s funding announcement comes as Cathay stories 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, the vast majority 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 odd shareholders totalling roughly HK$1.3 billion. This is after Cathay paid its odd 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 have been in long-term parking have returned, and Cathay stays on monitor to attain 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 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 the 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 prime 5 greatest airways on the 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 direction of its success as an international aviation hub. With a transparent imaginative and prescient to transfer past, Cathay goals to carry satisfaction to its individuals, prospects, shareholders and neighborhood.
