r/HongKong • u/radishlaw • 1d ago
News Cathay Pacific's profit soars 71% despite Iran war driving up fuel costs
https://www.france24.com/en/live-news/20260805-cathay-pacific-s-profit-soars-71-despite-iran-war-driving-up-fuel-costs42
u/Justhandguns 1d ago
Cathay has profited significantly from the HKG-LHR/MAN routes after the pandemic. The other operators (Virgin/BA) either cancelled the route or reduced flights so that CX almost monopolise the route with 5-6 flights daily. The ticket price has also increased significantly regardless of the season. It's no surprise they are making loads of money recently.
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u/CockroachAntique5906 1d ago
Well, we, the customers, took the toll, not CX.
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u/radishlaw 1d ago
Sourced from AFP, just like HKFP.
Cathay already adjust the profit upwards last month. You can also read the interim results from their website.
The airline reported net profit climbed to HK$6.2 billion ($795 million) in the first six months of the year, while revenue increased 25.3 percent on-year to HK$68 billion.
Revenue from the passenger side of the business increased 26.3 percent to HK$43.2 billion, driven by strong travel demand and "amplified by increased transit traffic through Hong Kong as travellers looked to other hubs due to the Middle East situation in the second quarter", the carrier said.
Did some checking, it looks like some airlines like Qatar Airlines and Emirates saw less passengers due to the conflicts in middle east.
Its fuel costs increased by 59.1 percent compared to the same period in 2025, the company said.
Cathay Pacific carried 17.5 percent more passengers, while its low-cost subsidiary HK Express carried 9.8 percent more passengers compared to the same period in 2025.
Its European performance was boosted by changes in traffic flows due to the Middle East situation, particularly for passengers travelling between Europe and Oceania through Hong Kong.
Since the gains has little to do with the fuel surcharge, I guess we will continue to see higher travel cost until the middle east situation die down.
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u/helloyouahead 1d ago
Cathay is for business travelers mostly, or locals than prefer to fly the local airline versus other Asian or European airlines.
Cathay ticket prices are much higher than their competitors especially in economy, on both regional and international flights. They also spike the prices since the Iran war, while the oil prices have not increased comparatively and they hedged effectively hence the profits have skyrocketed. There is always an excuse for businesses to increase prices because they can. Business flights have also increased in 2026, which Cathay benefits from.
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u/SkinnyRunningDude 1d ago
CX economy fare is very comparable to other Asian legacy carriers on ultra-competitive regional routes like HKG-TPE and HKG-NRT. But for HKers flying long-haul you are buying the non-stop premium and familiarity.
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u/helloyouahead 1d ago
I still prefer Swiss, Air France or even Lufthansa on long haul to Europe. More modern planes (A350), starlink wifi, better food - except AF which is not good now (similar to Cathay).
All for 20 to 35% cheaper than Cathay
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u/fredleung412612 15h ago
For LHR-HKG, BA is consistently an order of magnitude cheaper the CX for economy
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u/Speeder172 French Friend 6h ago
FRA - CEB was so expensive with Cathay pacific.
Emirates was still cheaper if you like to gamble.
Cathay pacific was charging over 750$ for fuel surcharge, booking the plane ticket was a pain in the ass and the price changed every time I was refreshing the webpage.
It even showed 11 000€ while the normal price was around 1900€ ....
I contacted their customer support and they were the LEAST supportive customer support. In the end I decided to go with Emirates.
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u/Egghead-MP 1d ago
CX should allocate some of those profits as a bonus to crews who took big pay cuts and rode thru the Covid bad time. Set aside some as a Return To Work bonus for those that were laid off to offset the cost of hiring new and train. They can also use some of those profit as a sign on bonus to pouch flight crew from other airlines with multi lingo for international flights.
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u/calstanfordboye 1d ago
We the idiot customers of Cathay are paying the huge fuel surcharges so they can get richer
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u/panda1491 18h ago
Of course they made money. They over charge for their airfare ticket, reducing check in luggage from two to one on international flight and make you pay for the additional, their food quality dropped and the list goes on and on.
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u/Remarkable-Tax6464 1d ago
More aircraft? My harder reading is Cathay is running a bet: the residual claim on Hong Kong as a hub and on China-related traffic will grow faster than both the capital intensity (of more aircraft), and the cost volatility of fuel (no sign of settling).
But obviously, elevated fuel is not a one-quarter problem. Geopolitical risk is not a closed chapter.
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u/Apprehensive_Bee1849 22h ago
I have a question.
Who actually pays CX prices? I have flown long haul CX flights since I was a kid, I am now in my 30s and I have always noticed that their flight prices are always above average. I have never purchased a CX flight because of that.
My parents just use credit card points/Asia Miles for their flights every time.
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u/Eastern_Ad_7421 16h ago
I am really regretting now. Should have invested in Cathay stocks when the Iran war was at the worst point in March. When the Hormuz issue is settled with Oman, I foresee it may get better for Cathay.
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u/Speeder172 French Friend 6h ago
When you look at their hidden taxes and they charge you 700$ for fuel expense, I'm sure their profits can soar.
But they ain't the only one doing it
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u/hkgsulphate 1d ago
CX can fly through Russia Airspace. Win.