Cathay Pacific Stock Jumps After Projecting Near-Record First-Half Profit

Shares of Cathay Pacific Airways (HKG:0293) surged on Thursday after the Hong Kong-based airline forecast a robust first-half profit, citing strong demand in both its passenger and cargo segments. The carrier's stock climbed 4.1% to HK$14.14 in response to the positive guidance.

Upgraded Profit Guidance

In a traffic update for June 2026, Cathay Pacific projected its net profit attributable to shareholders for the first half of the year would fall between HK$6.0 billion and HK$6.5 billion. This figure represents a significant increase of approximately 62% to 76% from the HK$3.7 billion earned in the first half of 2025 and would mark the second-highest first-half result in the airline's history.

The forecast includes a one-time gain of HK$1.4 billion resulting from the partial dilution of Cathay's stake in Air China, which decreased from 15.05% to 12.85% after a share sale. The airline also noted improved contributions from its low-cost carrier, HK Express, and other associate companies.

Strong Operational Performance

Excluding the one-off gain, Cathay's underlying performance was buoyed by strong fundamental demand. The company reported solid growth across its core operations for the first half of 2026:

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• Passenger volumes increased by 17.5% year-on-year.
• Cargo tonnage climbed by 9% year-on-year.

Key growth drivers for its freight business included shipments of semiconductors and pharmaceuticals, as well as strong cargo flows from mainland China into Southeast Asia. The airline acknowledged it faced the headwind of sharply elevated jet fuel costs tied to geopolitical conflict but was able to absorb the impact due to resilient demand, particularly in its premium cabins.

Market Context

Cathay Pacific's rally contributed to a positive session for the Hong Kong market, with the broader Hang Seng index trading up 1.2% on the day. The airline's strong outlook suggests continued recovery and operational strength in the post-pandemic travel and logistics landscape.