Cathay Pacific’s profit soars 71% to HK$6.2 billion amid Iran war and surcharges for passengers

Cathay Pacific, the Hong Kong-based airline, reported a significant 71% increase in net profit to HK$6.2 billion ($795 million) for the first half of the year. This surge was primarily driven by the surge in demand from passengers opting to avoid travel to the Middle East, outweighing the substantial rise in fuel costs due to the ongoing Iran war.

The airline's CEO, Guy Bradley, attributed the positive impact to strong performance across Cathay Pacific, Cathay Cargo, and HK Express, along with higher contributions from affiliates.

Revenue for the period rose by 25.3% year-on-year to HK$68 billion, with passenger revenue growing by 26.3% to HK$43.2 billion. This growth was notably bolstered by heightened travel demand and the increased transit traffic through Hong Kong, as travelers sought alternative hubs due to the Middle East situation, particularly in the second quarter. However, the airline faced a more challenging period in the second half of the year due to the heightened fuel prices, which nearly doubled from the first quarter.

Cathay Pacific's fuel expenses increased by 59.1% compared to the same period in 2025, largely due to the Iran war-induced fuel cost surge. The company has had to adjust its fuel surcharges multiple times to offset these increased costs. Despite the challenges, the airline carried 17.5% more passengers, and its low-cost subsidiary, HK Express, saw a 9.8% increase in passenger numbers compared to the same period last year.

The airline's European performance was positively influenced by changes in traffic routes due to the Middle East situation, with a particular focus on enhancing services between Europe and Oceania via Hong Kong. The airline had introduced additional flights to Europe in March and April to meet the rising demand as passengers prioritized alternative routings.

While the company remains cautiously optimistic about its prospects for the remainder of the year, it is on track to meet its passenger capacity growth target of around 10% for the group. The airline aims to expand its fleet by adding 150 new aircraft over the next decade, contingent on favorable market conditions.