Cathay Pacific Airways reported a 71 percent jump in first-half net profit to HK$6.24 billion, the strongest opening six months since 2010 and the second-highest in the carrier's history for the period, even as fuel costs surged 59 percent year on year.
The one-time lift
The reported figure includes a one-time gain of about HK$1 billion from the partial dilution of Cathay's stake in Air China. Jet fuel costs nearly doubled in the second quarter versus the first, though a HK$878 million hedging gain and fuel surcharges softened the blow. Revenue climbed 25.3 percent to HK$68 billion, pushing the profit margin to 9.2 percent from 6.7 percent a year earlier.
The fuel overhang
Chairman Guy Bradley said the airline remains "cautiously optimistic" for the rest of the year but flagged persistent pressure from elevated fuel prices. The International Air Transport Association forecasts jet fuel will average $152 per barrel in 2026, nearly 70 percent above 2025 levels. Cathay expects the impact to continue through the second half and says it remains alert to geopolitical developments.
Competition returns
The first half benefited from passengers rerouting away from Gulf hubs during Middle East disruptions. That tailwind is fading as Gulf carriers restore flights and compete more aggressively for Asia-Europe traffic. Rival Singapore Airlines posted its first quarterly loss since 2022 in the three months ended June 30 despite record revenue, weighed down by high fuel prices and losses from its Air India stake.
Capacity guidance intact
Cathay reiterated its target to grow passenger capacity by about 10 percent this year. Summer travel demand into the third quarter looks strong, Bradley said, though the outlook is subject to Middle East developments and broader macroeconomic factors.