Cathay Pacific Soars: Profit Jumps, Capacity Expands

Revenue also surged 12% to a record HK$116.8 billion. The airline projects a 10% increase in passenger capacity for the year ahead, supported by the delivery of eight new Airbus single-aisle jets and expanded flight frequencies and destinations.

This optimistic outlook comes despite ongoing geopolitical turbulence in the Middle East, which has led to surging energy prices and operational disruptions for many carriers. Cathay's management attributes its resilience to a strong balance sheet, prudent fuel hedging (covering approximately 30% of near-term needs), and network flexibility.

JPMorgan analysts concur, highlighting these factors as reasons Cathay is likely to outperform during current aviation disruptions. While the airline will increase fuel surcharges to offset rising costs and has suspended flights to Dubai and Riyadh until March, it has observed a near-term demand surge across long-haul routes, particularly to Europe, Australia, and the US, leading to volatile airfare pricing.

However, its budget unit, HK Express, saw widened losses of HK$996 million. The company also declared a second interim dividend of 64 Hong Kong cents per share.