Cathay Pacific Airways ( (CPCAY) ) has released its Q4 earnings. Here is a breakdown of the information Cathay Pacific Airways presented to its investors.
Cathay Pacific Airways Limited, a major airline based in Hong Kong, operates in the aviation sector, offering passenger and cargo services across the globe. The company has announced its 2024 annual results, showcasing a year of strategic growth and financial stability. Cathay Pacific reported a 10.5% increase in revenue, reaching HK$104,371 million, with a slight rise in profit attributable to shareholders at HK$9,888 million. The airline also declared a significant increase in dividends per ordinary share by 60.5%, reflecting its strong financial performance.
Key financial metrics highlighted include an increase in available seat kilometers by 30.6% and a rise in revenue passenger kilometers by 26.8%. Despite a decrease in passenger yield by 11.8%, the overall passenger revenue saw an 11.9% increase. Cathay Cargo also experienced growth, with an 8.3% rise in revenue and a 10.9% increase in cargo tonnage. The company successfully repaid the Hong Kong SAR Government’s investment and announced over HK$100 billion in new investments, including the acquisition of new-generation aircraft.
Cathay Pacific’s operational efficiency improved, with a decrease in cost per available tonne kilometer both with and without fuel. The company also reported a reduction in its total recordable injury frequency rate by 36%. However, challenges such as increased net borrowings and a higher net debt/equity ratio were noted. The airline’s strategic focus on rebuilding connectivity and enhancing customer experience through investments in fleet expansion and new cabin products was emphasized.
Looking ahead, Cathay Pacific is optimistic about the opportunities presented by the Three-Runway System at Hong Kong International Airport. The company plans to expand its network to over 100 destinations by 2025 and continue investing in sustainable aviation fuel and modernizing its fleet to achieve net-zero carbon emissions by 2050. The management remains vigilant about potential geopolitical impacts on cargo demand but is confident in the resilience of its business model.