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Investing.com-- Cathay Pacific Airways (HK:0293) reported a marginal rise in annual profit on Wednesday, as gains from robust travel demand were partially offset by higher costs and normalizing ticket prices.
Profit attributable for the year ended December 31, 2024, increased 1% to HK$9.89 billion ($1.27 billion), from HK$9.79 billion in the previous year.
The airline’s revenue grew 10.5% year-on-year to HK$104.37 billion, driven by an 11.9% increase in passenger revenue, and a 8.3% rise in cargo revenue.
Despite the revenue boost, profit margin declined to 9.5% from 10.4%, reflecting the impact of higher operating costs and normalizing passenger yields.
Shares of the company rose 0.5% to HK$11.16 as of 04:30 GMT, near their highest level since May 2019, they reached last week.
Cathay attributed the strong performance to robust travel demand and improved efficiency, though it noted that passenger yields declined 11.8% as ticket prices normalized.
The company declared a second interim dividend of HK$0.49 per share.
Looking ahead, Cathay expects further expansion in 2025, with flights returning to pre-pandemic levels and continued investment in fleet renewal.
However, the airline remains cautious about macroeconomic uncertainties and trade tensions that could impact travel demand, the company said in a statement.