Core Viewpoint - Cathay Pacific Airways has undergone significant restructuring and recovery after facing unprecedented challenges during the pandemic, with a strong performance expected in 2025 due to both external market improvements and internal reforms [1][4]. Business Recovery - From 2020 to 2022, Cathay Pacific faced severe operational challenges, with daily passenger numbers dropping to 302 from a normal level of around 100,000, leading to monthly cash burn of HKD 1.5 to 2 billion [2][6]. - The company implemented a drastic restructuring plan, including shutting down Dragonair and laying off approximately 8,500 employees, while initiating a HKD 39 billion capital restructuring plan [3][7]. - By early 2023, as travel restrictions eased, Cathay Pacific began to recover, with flight numbers returning to pre-pandemic levels by January 2025 [3][12]. Financial Performance - In 2023, Cathay Pacific achieved its highest profit in over a decade, and in 2024, it continued to see revenue and net profit growth, with a net profit of nearly HKD 10 billion [3][14]. - The company reported a revenue of HKD 1,043.71 billion in 2024, a 10.5% increase year-on-year, with significant contributions from both cargo and passenger services [14][15]. Workforce and Operations - After a significant reduction in workforce during the pandemic, Cathay Pacific began a large-scale recruitment drive, increasing its employee count by 12.25% in 2023 and hiring approximately 7,000 new employees in 2024 [10][11]. - The company faced challenges in restoring its workforce, particularly in recruiting and training pilots, which is a lengthy process [9][10]. Brand Image and Customer Service - Following a public relations crisis in May 2023, Cathay Pacific took steps to improve its service culture and expand Mandarin-speaking staff, including recruiting from mainland China [17][19]. - The airline has made changes to its in-flight services, including offering menus in multiple languages and incorporating local cuisine into its offerings [18][19]. Strategic Focus on Mainland China - Cathay Pacific has emphasized its strategic positioning in the mainland market, with a focus on the Greater Bay Area, which is seen as a critical growth area [20][21]. - The airline plans to enhance its service offerings and expand its route network in mainland China, with a goal of increasing its market share against local competitors [22][24].

Investment Rating - The report maintains a "Buy" rating for Cathay Pacific Airways [1] Core Insights - Cathay Pacific Airways reported a net profit of HKD 9.607 billion for 2024, a 6% increase year-on-year, exceeding market expectations [6] - The airline's operating revenue for 2024 grew by 10.5% to HKD 104.371 billion, driven by increased capacity and strong air cargo demand [6] - The company plans to distribute a second interim dividend of HKD 0.49 per share, raising the overall dividend payout ratio to 46% for 2024 [6] Financial Data and Profit Forecast - Revenue projections for Cathay Pacific Airways are as follows: - 2023: HKD 94.485 billion - 2024: HKD 104.371 billion - 2025E: HKD 109.011 billion - 2026E: HKD 114.937 billion - 2027E: HKD 120.286 billion - Year-on-year growth rates for revenue are projected at 85.1% for 2023, 10.5% for 2024, and 4.4% for 2025 [5] - Net profit forecasts are: - 2023: HKD 9.067 billion - 2024: HKD 9.607 billion - 2025E: HKD 9.008 billion - 2026E: HKD 10.248 billion - 2027E: HKD 10.702 billion - The net profit growth rates are -226.6% for 2023, 6.0% for 2024, and -6.2% for 2025 [5] - The report anticipates a slight decline in passenger kilometer yield for 2025, projecting a year-on-year decrease of 8% [6]

Investment Rating - The report maintains a "Buy" rating for Cathay Pacific Airways [2][7] Core Insights - Cathay Pacific Airways announced a net profit of HKD 9.607 billion for 2024, a 6% increase year-on-year, exceeding market expectations [7] - The airline's operating revenue for 2024 grew by 10.5% to HKD 104.371 billion, with a notable increase in passenger and cargo traffic [7] - The company plans to distribute a second interim dividend of HKD 0.49 per share, raising the overall dividend payout ratio to 46% for 2024 [7] Financial Data and Profit Forecast - Revenue projections for Cathay Pacific Airways are as follows: - 2023: HKD 94.485 billion - 2024: HKD 104.371 billion - 2025E: HKD 109.011 billion - 2026E: HKD 114.937 billion - 2027E: HKD 120.286 billion - Net profit forecasts: - 2023: HKD 9.067 billion - 2024: HKD 9.607 billion - 2025E: HKD 9.008 billion - 2026E: HKD 10.248 billion - 2027E: HKD 10.702 billion - Earnings per share (EPS) estimates: - 2023: HKD 1.41 - 2024: HKD 1.49 - 2025E: HKD 1.40 - 2026E: HKD 1.59 - 2027E: HKD 1.66 - The report indicates a projected price-to-earnings (P/E) ratio of 7.8 for 2025 [6][7]

Investment Rating - The report maintains a "Buy" rating for Cathay Pacific Airways [6][7]. Core Views - The net profit for 2H24 exceeded expectations, and the company is expected to maintain a historically high profit level. The 2024 operating revenue is projected at HKD 104.37 billion, a year-on-year increase of 10.5%, with a net profit attributable to shareholders of HKD 9.89 billion, up 1.0% [2][3]. - The report highlights strong passenger revenue and robust cargo demand, with 2H24 revenue reaching HKD 547.7 billion, a 7.6% increase year-on-year [3][4]. - The company is expected to share profits with a dividend of HKD 4.443 billion, corresponding to a dividend yield of 6.3% based on the closing price on March 12 [2][6]. Summary by Sections Financial Performance - In 2H24, Cathay Pacific's operating revenue was HKD 547.7 billion, up 7.6% year-on-year, driven by a 5.3% increase in passenger revenue to HKD 325.8 billion and a 14.7% increase in cargo revenue to HKD 131.0 billion [3][4]. - The company recorded a net profit of HKD 62.8 billion in 2H24, a 13.6% increase, benefiting from a 9.5% decrease in Brent oil prices and one-time gains of HKD 6.4 billion [4][5]. Profit Forecast and Valuation - The report adjusts the net profit forecasts for 2025-2027 to HKD 7.966 billion, HKD 8.483 billion, and HKD 8.224 billion, respectively, reflecting a slight increase in profitability expectations [5][19]. - The target price is raised to HKD 13.05, with a price-to-book ratio (PB) of 1.5 times for 2025, indicating a premium based on historical earnings [5][6]. Operational Metrics - The company is expected to maintain a high passenger load factor of 83.9% despite a slight year-on-year decrease, with unit revenue per passenger kilometer remaining strong [3][4]. - The report notes that the company is effectively managing capacity and increasing utilization rates despite fleet expansion limitations [3][5].

Financial Performance - Total revenue for 2024 reached HKD 104,371 million, representing a 10.5% increase from HKD 94,485 million in 2023[3] - Shareholders' profit attributable to Cathay Pacific Group was HKD 9,888 million, a slight increase of 1.0% compared to HKD 9,789 million in 2023[3] - Basic earnings per share rose to HKD 149.2, up 6.0% from HKD 140.8 in the previous year[3] - Cathay Group recorded a profit attributable to shareholders of HKD 9.888 billion in 2024, compared to HKD 9.789 billion in 2023, representing a slight increase[12] - The earnings per share for 2024 was HKD 1.492, up from HKD 1.408 in 2023[12] - The group achieved a solid financial performance in the second half of 2024, driven by increased cargo demand, passenger volume growth, and lower fuel prices[12] - The group reported a profit of HKD 8.849 billion from its airline and subsidiaries in 2024, down from HKD 9.225 billion in 2023[12] - The net profit attributable to shareholders was HKD 9,888 million in 2024, compared to HKD 10,000 million in 2023, indicating a slight decline[77] - Operating profit for 2024 was HKD 13,928 million, a decrease of 7.9% from HKD 15,125 million in 2023[65] - Total comprehensive income for the year was HKD 9,429 million, up from HKD 7,937 million in 2023[66] Revenue Breakdown - Passenger revenue for Cathay Pacific reached HKD 62.59 billion, an increase of 11.9% compared to 2023[26] - Cargo revenue increased by 8.3% to HKD 24 billion, with overall cargo tonnage rising by 10.9% to 1.5 million tons[26] - Passenger service revenue rose to HKD 68,589 million, up 11.0% from HKD 61,437 million in 2023[65] - The cargo service revenue rose to HKD 27,417 million, reflecting a growth of 7.1% from HKD 25,606 million in the previous year[50] Operational Metrics - The number of available tonne-kilometers increased by 17.0% to 24,836 million from 21,225 million in 2023[5] - Revenue passenger kilometers grew by 26.8% to 93,016 million, compared to 73,342 million in 2023[5] - The passenger load factor decreased by 2.5 percentage points to 83.2% from 85.7% in the previous year[5] - The average age of the fleet increased to 11.8 years from 11.1 years in 2023[5] - The company has hired and trained approximately 7,000 new employees in 2024, bringing the total workforce to over 30,000[23] Environmental Impact - The total greenhouse gas emissions rose by 20.8% to 12.8 million tonnes of CO2 equivalent[5] - The sustainable aviation fuel program achieved a total annual consumption of approximately 6,270 tons, increasing over ninefold compared to 2023[64] Debt and Financial Position - The net debt-to-equity ratio increased to 1.10 from 0.88, reflecting a rise in net borrowings to HKD 57,941 million, up 9.8% from HKD 52,764 million[3] - Borrowings increased to HKD 68.47 billion, a rise of 0.3%, with net borrowings (excluding cash) increasing by 9.8% to HKD 57.94 billion[60] - The group's equity attributable to shareholders decreased by 12.5% to HKD 52.5 billion due to various factors including the redemption of preferred shares[60] Dividends - The company declared a dividend of HKD 0.69 per share, a significant increase of 60.5% from HKD 0.43 in 2023[3] - The total dividend payout for ordinary shareholders for the year 2024 will be HKD 0.69 per share, amounting to HKD 4.44 billion[15] - The company has committed to maintaining a dividend policy of distributing approximately half of the consolidated after-tax profit, excluding non-cash special items, to ordinary shareholders[119] Future Plans and Investments - The group plans to invest over HKD 100 billion in 2024 to enhance passenger and cargo capacity, as well as customer experience[11] - The group is set to receive over 100 new generation aircraft during the year[11] - The group aims to restore flight numbers to pre-pandemic levels by January 2025[11] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[72] Challenges and Market Conditions - Despite challenges in 2025 and beyond, including trade conflicts and supply chain issues, Cathay remains committed to operational safety and quality[32] - The company reported a loss of HKD 400 million in 2024, compared to a profit of HKD 433 million in 2023, impacted by operational issues and market price normalization[28] Employee and Operational Growth - The company has maintained strong lobster exports to Hong Kong, contributing to the overall performance in fresh produce exports[49] - The company introduced new cabin products on the Boeing 777-300ER, receiving positive customer feedback[24] - Cathay Catering produced 23.6 million meals and handled 57,834 flights, representing increases of 21% and 33% respectively compared to 2023[62] Market Expansion - The company launched 15 new passenger routes in 2024, aiming to reach pre-pandemic flight levels by January 2025[22] - The group plans to add 11 new destinations to its network by 2025, enhancing its global reach[30] - The company announced the launch of direct flights to Munich starting June 2025, enhancing connectivity to major European cities[41]

Group 1 - Morgan Stanley has issued a research report giving Cathay Pacific an "overweight" rating with a target price of HKD 9.6 [1] - The report indicates that Cathay Pacific will benefit from rising air freight rates, strong cash flow, and improved financial conditions [1] - It is anticipated that a decrease in fuel costs will lead to an expansion in profit margins for Cathay Pacific [1]

Investment Rating - Buy (首次评级) [3][6] Core Views - Cathay Pacific is a global airline with a strong presence in Hong Kong and the Greater Bay Area, operating both passenger and cargo services globally [3] - The company is expected to benefit from the recovery of international air travel, particularly from transit passengers from mainland China [5] - Cathay Pacific is well-positioned to capitalize on the long-term structural changes in the aviation industry, including the reopening of polar routes and the competitive advantage in long-haul routes [5] - The company is entering a new phase of growth starting in 2025, driven by the normalization of travel demand and the expansion of Hong Kong International Airport's third runway system [5] Business Overview Passenger Business - Cathay Pacific's passenger business has shown strong recovery post-pandemic, with passenger volume rebounding significantly in 2023 and continuing to grow in 2024 [4] - The company's passenger load factor and revenue per passenger kilometer (RPK) have improved, although ticket prices are expected to decline slightly as capacity increases [4] - Cathay Pacific is expected to maintain high ticket prices due to the supply-demand imbalance, with passenger demand still being released gradually [4] Cargo Business - Cathay Pacific is a leading player in the global air cargo market, with significant capacity deployed in Northeast Asia and North America [3] - The company's cargo business has remained strong, with cargo yields staying above pre-pandemic levels [4] - The company is expected to continue increasing cargo capacity, leveraging Hong Kong's position as a global air cargo hub [4] Financial Performance and Valuation - Cathay Pacific's net profit is expected to decline to HKD 7.133 billion in 2024 but rebound to HKD 9.008 billion and HKD 10.82 billion in 2025 and 2026, respectively [6] - The company's ROE is projected to reach 10.9%, 12.6%, and 13.7% in 2024, 2025, and 2026, respectively [6] - Based on the PB-ROE valuation model, the target PB ratio for 2025 is 1.1-1.2x, implying a valuation range of HKD 78.7-85.8 billion, representing an upside potential of 37-50% [6] Strategic Advantages - Cathay Pacific benefits from its dominant position in Hong Kong's aviation market, with a market share of over 55% [102] - The company is expected to gain from the expansion of Hong Kong International Airport's third runway system, which will significantly increase capacity and open up new growth opportunities [104] - Cathay Pacific's extensive global network and focus on international routes position it well to benefit from the recovery of long-haul travel and the competitive advantages in the post-pandemic aviation landscape [5] Industry Outlook - The global aviation industry is expected to see a recovery in passenger demand, particularly in international travel, with Cathay Pacific well-positioned to benefit from this trend [5] - The air cargo market remains strong, with global demand for air freight continuing to grow, providing further growth opportunities for Cathay Pacific [132] - The long-term growth of the Greater Bay Area and the expansion of infrastructure in the region will further support Cathay Pacific's growth, particularly in the cargo segment [112]

Financial Performance - For the six months ended June 30, 2024, the group reported revenue of HKD 49,604 million, an increase of 13.8% compared to HKD 43,593 million in the same period of 2023[6]. - The attributable profit to shareholders of Cathay Pacific Group was HKD 3,613 million, a decrease of 15.3% from HKD 4,268 million in the previous year[6]. - Basic earnings per share decreased by 14.8% to HKD 52.4 cents from HKD 61.5 cents[6]. - Total revenue for Cathay Pacific increased by 14.0% to HKD 44.784 billion in the first half of 2024, up from HKD 39.273 billion in the previous year[40]. - Passenger service revenue rose by 20.0% to HKD 30.017 billion, with available seat kilometers increasing by 42.7%[40]. - Cargo service revenue increased by 1.5% to HKD 10.902 billion, with available cargo ton kilometers rising by 11.4%[40]. - Operating expenses for the group increased by 17.6% to HKD 45.152 billion, compared to HKD 38.403 billion in the first half of 2023[41]. - The operating profit before non-recurring items was HKD 5,907 million, down 11.0% from HKD 6,636 million in 2023[50]. - The net profit for the period was HKD 3,613 million, a decrease of 15.4% from HKD 4,268 million in the previous year[52]. Operational Metrics - The group had available unrestricted cash of HKD 25,416 million, up 27.2% from HKD 19,985 million[6]. - The debt-to-equity ratio improved to 0.78 from 0.88, a decrease of 0.10 times[6]. - The group operated a fleet of 231 aircraft, with 73 new aircraft expected to join in the coming years[4]. - Available tonne-kilometers increased by 22.8% to 11,822 million compared to 9,628 million in the previous year[7]. - Available seat-kilometers rose by 42.7% to 52,881 million from 37,053 million year-on-year[7]. - Revenue passenger kilometers grew by 34.9% to 43,583 million, up from 32,308 million[7]. - Passenger load factor decreased by 4.8 percentage points to 82.4% from 87.2%[7]. - Average aircraft utilization increased by 34.3% to 9.0 hours per day from 6.7 hours[7]. Fleet and Capacity Expansion - The average age of the fleet increased by 0.5 years to 11.5 years compared to 11.0 years last year[7]. - The group plans to replace its Airbus A300-600F freighter fleet with second-hand Airbus A330F freighters by 2025[8]. - The company plans to expand its flight destinations from over 80 to 100 by 2025, having announced 10 new routes this year, with 8 already in service[12]. - The company plans to introduce new seating products over the next three years, including a redesigned business class on the Boeing 777-300ER and new cabins on the Airbus A330 by 2026[12]. Sustainability Initiatives - The group aims to reduce carbon emissions intensity by 12% by 2030 compared to 2019 levels, and has made progress in sustainable aviation fuel initiatives[11]. - The group plans to modernize its fleet with new generation aircraft, including Airbus A321neo, A320neo, Boeing 777-9, and A350F freighters, to support long-term development and achieve net-zero carbon emissions by 2050[11]. - Cathay Pacific aims to achieve net-zero carbon emissions by 2050 and reduce carbon intensity by 12% from 2019 levels by 2030[35]. - The airline plans to reduce single-use plastic per passenger from an average of 7.7 items in 2019 to 1.5 items by 2025[35]. Employee and Recruitment - The group employs over 27,200 staff worldwide, with approximately 22,700 based in Hong Kong[5]. - The group is in a significant recruitment and training phase to meet increasing travel demand, restoring passenger flights to 80% of pre-pandemic levels[9]. - The company will increase its workforce by 5,000 by the end of this year, bringing the total number of employees to 29,000 to support growth[12]. - The "Wellbeing@Cathay" program has been launched to enhance employee mental and physical health, including various health-related activities[37]. Customer Experience and Services - The company is committed to enhancing customer experience with free Wi-Fi services for business class passengers and Cathay Diamond Card members in the coming months[12]. - The company has partnered with Michelin-starred restaurants to enhance in-flight dining experiences, showcasing a range of gourmet meals[18]. - The company is focusing on digitalization and sustainability in its cargo operations, reflecting confidence in Hong Kong as a logistics hub[12]. Financial Management and Investments - The group continues to implement financial risk management policies, including currency, interest rate, and fuel price risk management[47]. - The company has completed the redemption of HKD 9.75 billion in preferred shares and paid HKD 2.4 billion in dividends related to these shares[11]. - The group plans to redeem and cancel all 195,000,000 preferred shares by the end of July 2024, subject to market conditions[85]. - The group issued HKD 18,250 million in non-listed notes under its USD 2.5 billion medium-term note program, compared to no issuance in the previous six months[78]. Market Expansion and Strategic Partnerships - The company is exploring strategic partnerships to enhance its market presence in Asia, particularly in the Greater Bay Area[110]. - The company plans to expand flight services to mainland China, increasing capacity to attract more travelers[17]. - New direct flights to Ningbo will be launched on August 1, 2024, enhancing connectivity in Northeast Asia[17]. Awards and Recognition - Cathay Pacific was awarded "Best Green Cargo Airline of the Year 2024" at the AFLAS Awards in June 2024[22]. - The company received four awards from the Hong Kong Human Resources Management Society, including the Gold Award for Employee Experience[26]. - The company received the "Top 5 Airlines by Absolute Cargo Growth (Global)" award at the Changi Airport Group's 2024 Changi Airline Awards in May[22].

Investment Rating - The investment rating for Cathay Pacific Airways is maintained as "Buy" with a target price adjusted to HKD 11.15 [3][8]. Core Views - The report indicates that while the 1H24 performance was below expectations, the company is still viewed positively in terms of its profit cycle, with expectations for improved profitability and return on equity (ROE) [3][4]. - The company reported a net profit attributable to shareholders of HKD 3.613 billion for 1H24, a year-on-year decrease of 15.3%, while revenue increased by 13.8% to HKD 46.904 billion [3][4]. Summary by Sections Financial Performance - In 1H24, Cathay Pacific's capacity recovery was steady, with ASK/RPK increasing by 42.7%/34.9%, returning to 65%/64% of the levels seen in the same period of 2019 [4]. - The passenger load factor was 82.4%, down 4.8 percentage points year-on-year, while unit revenue per passenger kilometer decreased by 11.0% [4]. - The company recorded passenger revenue of HKD 33.0 billion, a 19.7% increase, and cargo revenue of HKD 12.61 billion, a 1.4% increase [4][5]. Cost Management - Operating costs for 1H24 were HKD 43.7 billion, up 18.2% year-on-year, but unit costs showed a decline due to improved aircraft utilization [5]. - The company achieved an operating profit of HKD 5.91 billion, a decrease of 11.0% year-on-year [5]. Dividend Policy - Cathay Pacific announced an interim dividend of HKD 0.20 per share, reflecting a payout ratio of 38%, indicating a positive outlook on profitability [6]. Future Projections - The report projects net profits for 2024, 2025, and 2026 to be HKD 7.736 billion, HKD 7.929 billion, and HKD 8.112 billion respectively, with corresponding EPS estimates of HKD 1.20, HKD 1.23, and HKD 1.26 [7][11]. - Revenue forecasts for 2024, 2025, and 2026 are set at HKD 105.888 billion, HKD 115.790 billion, and HKD 122.367 billion, reflecting growth rates of 12.07%, 9.35%, and 5.68% respectively [7][11].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was HKD 49,604 million, representing a 13.8% increase from HKD 43,593 million in 2023[3] - The profit attributable to shareholders for the same period was HKD 3,613 million, a decrease of 15.3% compared to HKD 4,268 million in 2023[3] - The basic earnings per share decreased by 14.8% to HKD 0.524 from HKD 0.615 in the previous year[3] - Cathay Pacific recorded a profit of HKD 3.613 billion in the first half of 2024, down from HKD 4.268 billion in the same period of 2023[6] - The group’s airlines and subsidiaries reported a profit of HKD 3.846 billion after excluding special items, down from HKD 4.763 billion in the previous year, primarily due to normalizing ticket prices[6] - The operating profit before tax for Cathay Pacific, excluding special items, was HKD 4,391 million, down 10.2% from HKD 4,890 million[26] - The operating profit for the six months ended June 30, 2024, was HKD 3,372 million, down from HKD 3,959 million in 2023, reflecting a decrease of 14.8%[48] - The net profit attributable to shareholders was HKD 3,613 million, a decrease of 15.4% from HKD 4,268 million in the prior year[41] Revenue Breakdown - Cathay Pacific's passenger revenue increased to HKD 30.17 billion in the first half of 2024, a 20.0% increase compared to the same period in 2023[7] - Passenger service revenue was HKD 33,004 million, up 19.7% from HKD 27,563 million year-on-year[32] - Cargo revenue for Cathay Pacific was HKD 10.92 billion, a 1.5% increase from the previous year, with total cargo tonnage rising by 10.4% to 719,000 tons[7] - Cathay Pacific's cargo service revenue saw a modest increase of 1.5%, reaching HKD 10,902 million, up from HKD 10,741 million[24] Capacity and Operations - The total available tonne-kilometers increased by 22.8% to 11,822 million from 9,628 million in 2023[4] - The available seat kilometers rose by 42.7% to 52,881 million compared to 37,053 million in 2023[4] - The passenger load factor decreased by 4.8 percentage points to 82.4% from 87.2% in the previous year[4] - The passenger flight capacity has been restored to 80% of pre-pandemic levels as of the second quarter of 2024[6] - The total number of passengers carried reached 10.7 million, averaging about 59,000 passengers per day, which is a 36.4% increase year-on-year[7] - In H1 2024, passenger capacity increased by 42.7% to 52,881 million available seat kilometers, with an overall load factor of 82.4%[14] Financial Position - The net debt decreased by 9.1% to HKD 47,971 million from HKD 52,764 million in 2023[2] - The available cash increased by 27.2% to HKD 25,416 million from HKD 19,985 million in 2023[2] - The group's net borrowings decreased by 9.1% to HKD 47,971 million, with a debt-to-equity ratio dropping from 0.69 to 0.61[29] - The total debt as of June 30, 2024, was HKD 66,810 million, a decrease from HKD 68,294 million at the end of 2023[50] - The net debt to equity ratio improved to 0.78 in 2024 from 0.88 in 2023, indicating a stronger balance sheet[50] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.20 per share, compared to no dividend in the previous year[3] - The group plans to distribute an interim dividend of HKD 0.20 per ordinary share, payable on October 9, 2024[6] - The company reported no dividend arrears for ordinary shareholders as of June 30, 2024[63] Strategic Initiatives - The group is undergoing an unprecedented recruitment and training phase to meet rising travel demand[6] - The company plans to reach pre-pandemic flight levels by Q1 2025, with an increase of 5,000 employees by year-end, totaling 29,000 staff[12] - The passenger flight network will expand from over 80 to 100 destinations by 2025, with 10 new routes announced this year, 8 of which are already operational[12] - Cathay Pacific aims to modernize its fleet with new aircraft, including Airbus A321neo, A320neo, Boeing 777-9, and A350F freighters, to support long-term development and reduce carbon emissions[11] Sustainability Efforts - Cathay Pacific has set a new target to reduce carbon intensity by 12% by 2030 compared to 2019 levels, reflecting its commitment to sustainability[8] - The company plans to offset 10% of its carbon emissions from business travel with sustainable aviation fuel starting in 2024[31] Market and Demand Insights - Cargo demand in H1 2024 was strong, particularly for e-commerce and traditional air freight, with overall cargo capacity growth exceeding last year's figures[21] - The Southeast Asia market remains strong, with increased passenger volume to mainland China due to visa exemptions, particularly during festive periods[19] - The company is expanding services to mainland China, with additional flights and increased capacity for personal travel plans, enhancing connectivity[16] Governance and Compliance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[68] - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[71] - The chairman of the board is Ho Yat-Lai, with a team of directors overseeing the company's operations[71]