Cathay Pacific posts best first-half profit since 2010 on strong demand
Hong Kong carrier has been among the biggest beneficiaries of the Iran war as travellers rerouted away from Gulf hubs.
Cathay Pacific Airways reported its highest first-half profit since 2010, with a 71% increase to HK$6.24 billion (S$1 billion) for the six months ending June 30. The airline credited strong passenger and cargo demand for the surge in profits, despite a 59% rise in fuel costs due to the Middle East conflict. Cathay chairman Guy Bradley expressed cautious optimism for the rest of 2026, subject to developments in the Middle East situation and other macroeconomic factors.
Revenue for the period climbed 25.3% to a record HK$68 billion, with profit margins expanding to 9.2% from 6.7%. The results included a one-time gain of about HK$1 billion from partial dilution of Cathay's stake in Air China. Shares of the airline rose 3.3% after the results were released, up 19.1% so far in 2026. However, fuel prices are expected to remain high, with forecasts projecting an average of US$152 per barrel in 2026, nearly 70% above 2025 levels.
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