Cathay posts 9.5% rise in profit to HK$10.82 billion but warns of fuel surcharges
Cathay premium and cargo growth lifted results, but HK Express recorded deeper loss amid route expansion and engine issues
Cathay Pacific Airways’ net profit climbed by 9.5 per cent to HK$10.82 billion (US$1.39 billion) in 2025, driven by increased capacity and robust cargo demand, but the Hong Kong flag carrier has warned of higher fuel surcharges due to conflict in the Middle East, ongoing supply chain disruptions and inflated costs.
Cathay Group chairman Patrick Healy said on Wednesday that the results marked the airline’s third consecutive year of profits. But he cautioned that global geopolitical tensions were unsettling businesses and pushing up fuel prices.
Hong Kong is feeling the impact of ongoing tensions in the Middle East, as joint US-Israel strikes on Iran have disrupted air travel, oil exports and supply chains, prompting the airline group to cancel all flights to Dubai and Riyadh for March.
Hong Kong Airlines on Thursday became the first local carrier to announce a fuel surcharge increase of as much as 35.2 per cent.
Cathay Pacific, meanwhile, said it expected that fuel surcharges would also go up because of doubled jet fuel prices.
“The prevailing global geopolitical environment is volatile, causing unexpected shifts in passenger and cargo traffic flows as well as jet fuel prices,” Healy said. “Ongoing supply chain disruptions and cost inflation continue to impact the delivery of new aircraft, cabin products and parts.