Core Viewpoint - The aviation sector is struggling to fully recover despite some positive operational data, with many airlines still in a state of loss and unable to achieve profitability [1][2][8]. Group 1: Passenger Flow and Demand - During the 2024 Qingming Festival, the total inter-regional passenger flow reached 750 million, with an average of 250 million per day, marking a 56.1% increase compared to the same period in 2023 and a 20.9% increase compared to 2019 [1]. - The aviation sector saw a passenger volume of 5.1 million during the holiday, which is a 24% increase year-on-year, but only a 2% increase compared to 2019, indicating weak demand relative to other transport modes [1][2]. Group 2: Financial Performance of Airlines - In 2023, only one out of six Hong Kong-listed airlines, Cathay Pacific, reported a profit of 9.067 billion, while the other five remained in loss, with China Eastern Airlines reporting a net loss of 8.168 billion [2][8]. - The overall loss for airlines in 2023 was approximately 17.1 billion, with a significant portion attributed to traditional off-peak seasons and rising oil prices [6][8]. Group 3: Operational Metrics - Domestic flight capacity has surpassed 2019 levels, with international flights recovering to over 60% by the end of 2023. Daily passenger flights averaged 13,514, a 6.5% decrease from 2019 [4]. - The passenger transport volume for domestic routes exceeded 380 million, showing a 1.5% increase compared to 2019, while international routes saw a significant decline of 58% [4][5]. Group 4: Future Outlook - The Civil Aviation Administration of China aims for a passenger transport volume of 690 million in 2024, representing an 11% increase from 2023 and a 4.6% increase from 2019 [8]. - The 2024 Spring Festival saw record passenger numbers, with 83.45 million transported, a 51.1% increase from 2023 and a 14.5% increase from 2019, indicating a potential recovery trend [8]. - Analysts predict a positive outlook for airline performance in 2024, driven by the recovery of international flights, improved cost conditions, and a favorable demand environment [8].

Financial Performance - Revenue increased by 85.1% to HKD 94,485 million in 2023 compared to HKD 51,036 million in 2022[6] - Net profit attributable to Cathay Pacific shareholders was HKD 9,789 million in 2023, a significant improvement from a loss of HKD 6,623 million in 2022[6] - Cathay Group recorded a profit attributable to shareholders of HKD 9.789 billion in 2023, compared to a loss of HKD 6.623 billion in 2022[10] - Cathay Pacific's post-tax profit for 2023 was HKD 11.341 billion, compared to a profit of HKD 1.434 billion in 2022[76] - Total revenue increased by 85.1% to HKD 94.485 billion in 2023[77] - Cathay Pacific's pre-tax profit for 2023 was HKD 10.042 billion, a significant improvement from HKD 2.456 billion in 2022[84] - Net profit for 2023 was HKD 9,790 million (USD 1,255 million), a significant improvement from a net loss of HKD 6,622 million (USD 849 million) in 2022[167] - Basic earnings per share for 2023 were HKD 140.8 cents (USD 18.1 cents), compared to a loss of HKD 112.4 cents (USD 14.4 cents) in 2022[167] - Total comprehensive income for 2023 was HKD 7,937 million (USD 1,018 million), recovering from a comprehensive loss of HKD 8,440 million (USD 1,082 million) in 2022[168] - The company reported a net profit of HKD 9,790 million for the year 2023, compared to a net loss of HKD 6,622 million in 2022[172] Operational Metrics - Available seat kilometers (ASK) surged by 326.8% to 85,607 million in 2023 from 20,056 million in 2022[6] - Passenger load factor improved by 12.1 percentage points to 85.7% in 2023 from 73.6% in 2022[6] - Cargo revenue ton kilometers (RTK) increased by 40.3% to 8,099 million in 2023 from 5,774 million in 2022[6] - Cathay Group's passenger flights recovered to 70% of pre-pandemic levels by the end of 2023, connecting Hong Kong to approximately 80 destinations[10] - Cathay Pacific carried 18 million passengers in 2023, a 541.4% increase from 2022, with an average daily passenger count of 49,300[18] - Cathay Pacific's passenger revenue reached HKD 55.95 billion, a 308.8% increase compared to 2022[18] - Cathay Pacific's cargo revenue decreased by 17.9% to HKD 22.16 billion in 2023, with cargo yield dropping by 41.3% to HKD 2.74[18] - Cathay Pacific's passenger traffic increased by 541.4% to 18 million passengers, with revenue passenger kilometers up by 396.8%[79] - Cathay Pacific's cargo load factor decreased to 62% in 2023 from 70.6% in 2022, but cargo yield remains 46.5% higher than pre-pandemic levels[18] - Cathay Pacific's passenger revenue in 2023 reached HKD 55.951 billion, a 308.8% increase compared to 2022[21] - Cathay Group operated passenger flights at 70% of pre-pandemic levels by the end of 2023, serving approximately 80 destinations[21] - Cathay Pacific carried 18 million passengers in 2023, with an average daily passenger count of 49,300, a 541.4% increase from 2022[21] - The load factor increased by 12.1 percentage points to 85.7% in 2023, while yield decreased by 17.7% to HKD 76.3 cents[21] - Available seat kilometers (ASK) increased by 326.8% in 2023, with the Americas region showing the highest increase at 213.6%[23] - The load factor for the Americas region reached 91.9% in 2023, an increase of 15.0 percentage points from 2022[23] - Cathay Pacific resumed flights from Guangzhou in March 2023, increasing frequency to twice daily[24] - The company introduced upstream port check-in and baggage check services for passengers traveling via the Hong Kong-Zhuhai-Macau Bridge starting August 2023[24] - Cathay Pacific celebrated 40 years of operations in the Americas, resuming the Chicago route in October 2023[25] - The London Heathrow route was restored to a maximum of five daily flights in 2023[26] - Cathay Pacific increased flights to mainland China to 170 weekly flights serving 15 cities and 16 airports by December 31, 2023[28] - The company operated flights to 23 destinations and 25 airports in North Asia by December 31, 2023[28] - Cathay Pacific resumed seasonal flights between Christchurch and Hong Kong in December 2023, marking the first seasonal flight restart since the pandemic[29] - The company operated flights to 7 destinations in South Asia, the Middle East, and Africa by December 31, 2023[30] - Cathay Pacific announced the purchase of up to 32 new Airbus A321neo and A320neo aircraft, expected to be delivered by 2029[32] - The company reopened all Cathay Pacific airport lounges globally, except for Paris Charles de Gaulle Airport, due to terminal maintenance[31] - Cathay Pacific launched a new lounge at Shenzhen Shekou Cruise Home Port, the first of its kind outside an airport in mainland China[31] - The company was ranked 9th in the AirlineRatings.com 2023 Top 25 Airlines in the World[32] - Cathay Pacific was awarded the "5-Star Global Airline" in the 2024 APEX Airline Awards[32] - The company received the "Best Inflight Entertainment" award in the 2023 Skytrax World Airline Awards[32] - Cathay Pacific's cargo revenue in 2023 was HKD 22.162 billion, a decrease of 17.9% compared to 2022[35] - Cargo yield in 2023 decreased by 41.3% to HKD 2.74, with an average load factor of 62%[35] - Available cargo ton kilometers (ACTK) in 2023 increased by 59.7% compared to 2022[37] - Cargo load factor in 2023 was 62.0%, a decrease of 8.6 percentage points from 2022[37] - Cargo revenue ton kilometers (RTK) in 2023 increased by 40.3% compared to 2022[35] - Total cargo tonnage in 2023 increased by 19.7% to 1.381 million tons[35] - Cathay Pacific operated cargo services to 11 destinations in the Americas and 5 in Europe as of December 31, 2023[38] - The company expanded its cross-Pacific routes in late 2023 to meet peak air cargo demand[38] - Cathay Pacific resumed cargo flights to mainland China cities starting in the summer of 2023[38] - The company increased passenger flights to Japan, South Korea, and Taiwan, noting an increase in inbound cargo tonnage[38] - Southeast Asia region saw a significant increase in cargo tonnage to Hong Kong and North Asia due to expanded belly cargo services[40] - Operated cargo services to 5 destinations and belly cargo services to 12 destinations in Southeast Asia as of December 31, 2023[40] - Operated cargo services to 3 destinations and belly cargo services to 5 destinations in the Southwest Pacific region as of December 31, 2023[40] - Cargo flights to Dhaka were reduced from 3 to 2 per week starting January 19, 2023[40] - Cargo flights to Chennai and Delhi were reduced by 1 per week starting winter 2023[40] - Cargo services to Bangalore were suspended starting winter 2023[40] - Announced purchase of 6 new Airbus A350F cargo aircraft with an option for 20 more, with first deliveries expected in early 2027[43] - Nearly half of cargo bookings are now made through the upgraded online booking platform "Book & Go"[40] - Successfully conducted the world's first ONE Record cargo arrangement pilot program with Hong Kong Airport Authority[41] - Cathay Cargo won "Air Cargo Airline of the Year" at the 49th Air Transport World (ATW) Industry Achievement Awards[45] - Cathay Pacific increased the number of redeemable seats per flight by 100% compared to pre-pandemic levels[49] - Cathay Pacific launched a full-mileage redemption website in August 2023, allowing redemptions for popular destinations starting at 3,000 miles[49] - Cathay Pacific's subsidiary, HK Express, resumed flights to pre-pandemic levels in April 2023, operating 130% of pre-pandemic capacity by the end of 2023[53] - HK Express achieved an average load factor of 86% in 2023, a 17.7 percentage point increase from 2022[53] - Cathay Pacific's subsidiary profits in 2023 were HKD 10 million, compared to a loss of HKD 1.764 billion in 2022[52] - Cathay Pacific's associated company losses in 2023 were HKD 1.562 billion, compared to a loss of HKD 6.293 billion in 2022[52] - Hong Kong Express resumed daily flights to Ningbo in March, returning to pre-pandemic levels[54] - Hong Kong Express operated weekly approximately 230 flights serving 15 destinations in North Asia as of December 31, 2023[54] - Hong Kong Express launched daily flights to Hanoi in April and resumed Nha Trang route in June, increasing Vietnam destinations to three[55] - Hong Kong Express operated weekly approximately 72 flights serving 7 destinations in Southeast Asia as of December 31, 2023[55] - Hong Kong Express introduced a customer carbon offset program in October 2023, partnering with CHOOOSE[56] - Hong Kong Express' fleet consisted of 33 Airbus narrow-body aircraft with an average age of 7.1 years as of December 31, 2023[58] - Hong Kong Express received the first 4 Airbus A321-200neo aircraft in 2023, part of a previous order of 16[58] - Hong Kong Express announced the purchase of up to 32 new Airbus A321neo and A320neo aircraft, expected to be delivered by 2029[58] - Hong Kong Express' passenger revenue increased by 749.2% to HK$5,486 million in 2023[60] - Hong Kong Express' available seat kilometers increased by 859.5% to 9,432 million in 2023[61] - Cathay Pacific Catering Services produced 19.4 million meals and handled 43,389 flights in 2023, representing a 379% and 170% increase respectively compared to 2022[63] - Cathay Pacific Cargo Terminal handled 1.4 million tons of cargo in 2023, a 17% increase from 2022[64] - Hong Kong Airport Ground Services accounted for 45% and 17% of the apron and ground handling services market at Hong Kong International Airport in 2023, with flight numbers increasing by 134% and 426% respectively compared to 2022[64] Fleet and Aircraft - The company operates a fleet of 230 aircraft, with 75 new passenger and cargo aircraft expected to join the fleet in the coming years[5] - Cathay Group's total fleet consisted of 230 aircraft with an average age of 10.8 years as of December 31, 2023[7] - Cathay Group has 75 aircraft on order, including 57 for delivery in 2026 and beyond[7] - Cathay Pacific's fleet included 181 aircraft with an average age of 11.1 years as of December 31, 2023[7] - Hong Kong Express's fleet consisted of 33 aircraft with an average age of 7.1 years as of December 31, 2023[7] - Air Hong Kong plans to return 7 A300-600F freighters by 2025 and replace them with 6 second-hand A330F freighters, maintaining a fleet of 15 aircraft[8] - The company announced the purchase of an additional 32 Airbus A321neo and A320neo aircraft, bringing the total number of new aircraft ordered to over 70, with the option to purchase an additional 52[16] - Cathay Pacific will introduce new cabin products, including a redesigned business class and premium economy class on Boeing 777-300ER aircraft in 2024[19] - The company held 28 aircraft under lease agreements as of December 31, 2023, with ownership transferring at the end of the lease term or with a reasonably certain purchase option[188] - The company held 46 aircraft under lease agreements as of December 31, 2023, with ownership not transferring at the end of the lease term[188] - The confirmed lease liability (discounted) for aircraft and related equipment was HKD 26,146 million in 2023, down from HKD 28,683 million in 2022[189] - The potential future lease payments not included in lease liabilities due to extension options were HKD 4,375 million in 2023, down from HKD 5,228 million in 2022[189] - The company prepaid HKD 32.31 billion for aircraft and related equipment to manufacturers as of December 31, 2023, up from HKD 29.64 billion in 2022[192] - The company recognized a HKD 208 million impairment reversal for three previously impaired aircraft that were returned to service[192] - The total prepayments for intangible assets were HKD 20.805 billion as of December 31, 2023, up from HKD 20.468 billion in 2022[193] - The goodwill allocated to Cathay Pacific was HKD 7.884 billion as of December 31, 2023, unchanged from 2022[195] - The discount rate used for the discounted cash flow analysis of Cathay Pacific's cash-generating unit was 9.6% in 2023, up from 9.5% in 2022[195] - The long-term growth rate assumption for cash flows beyond the forecast period was 3% in 2023, unchanged from 2022[195] Financial Position and Liquidity - The company's debt-to-equity ratio decreased to 0.88 times in 2023 from 0.92 times in 2022[6] - Cathay Group's unrestricted available liquidity stood at HKD 20 billion as of December 31, 2023[10] - The company repurchased 50% of the preferred shares in December 2023, amounting to HKD 9.75 billion, with plans to repurchase the remaining 50% by the end of July 2024[11] - The company paid approximately HKD 1.97 billion in preferred stock dividends to the Hong Kong Special Administrative Region Government in 2023[11] - Total assets as of December 31, 2023, amounted to HKD 174,115 million, with significant increases in property, plant, and equipment (HKD 8,731 million) and intangible assets (HKD 340 million)[87] - Borrowings decreased by 11.4% to HKD 68,294 million, with net borrowings (excluding lease liabilities) down by 10.1% to HKD 56,973 million[88] - Unrestricted available liquidity stood at HKD 19,985 million as of December 31, 2023, including HKD 15,530 million in liquid funds and HKD 4,460 million in committed unused credit[88] - Net debt (excluding lease liabilities) decreased by 8% to HKD 41,443 million[88] - Shareholders' equity decreased by 5.9% to HKD 60,226 million, primarily due to the redemption of HKD 9,750 million in preference shares and a reduction in other comprehensive income of HKD 1,853 million[91] - The company recorded a profit of HKD 9,789 million (excluding non-controlling interests), partially offset by dividends paid to preference shareholders of HKD 1,969 million[92] - Unused proceeds from the issuance of equity securities, including HKD 31.1 billion raised in 2020, were fully utilized for general corporate purposes in the first half of 2023[93] - The company proposed a dividend of HKD 2,768 million for the year, with a per-share dividend of HKD 0.43[87] - Total assets decreased to HKD 128,622 million in 2023 from HKD 137,512 million in 2022[169] - Net current liabilities increased to HKD 22,744 million in 2023 from HKD 17,066 million in 2022[169] - Property, plant, and equipment decreased to HKD 116,088 million in 2023 from HKD 118,855 million in 2022[169] - Intangible assets decreased to HKD 14,539 million in 2023 from HKD 14,800 million in 2022[169] - Cash and cash equivalents increased to HKD 7,894 million in 2023 from HKD 7,340 million in 2022[170] - Net cash inflow from operating activities increased to HKD 26,408 million in 2023 from HKD 17,836 million in 2022[170] - Net cash outflow from investing activities decreased to HKD 2,668 million in 2023 from HKD 2,760 million in 2022[170] - Net cash outflow from financing activities increased to HKD 23,178 million in 2023 from HKD 16,236 million in 2022[170] - Interest-bearing liabilities decreased to HKD 57,771 million in 2023 from HKD 62,463 million in 2022[169] - Share capital decreased to HKD 28,828 million in 2023 from HKD 48,322 million in 2022[169] - Cathay Pacific's total equity increased to HKD 60,033 million in

Financial Performance - The total revenue for Cathay Pacific in 2023 was HKD 94,485 million, an increase of 85.1% compared to HKD 51,036 million in 2022[3]. - The net profit attributable to shareholders was HKD 9,789 million, a significant turnaround from a loss of HKD 6,623 million in 2022, representing an increase of HKD 16,412 million[3]. - The basic earnings per share rose to HKD 1.408, compared to a loss of HKD 1.124 in 2022, marking an increase of 253.2%[3]. - The operating margin improved to 10.4%, a rise of 23.4 percentage points from a loss of 13.0% in 2022[3]. - The group reported a net profit of HKD 9,790 million for the year, a substantial improvement from a net loss of HKD 6,623 million in the previous year[58]. - The operating profit for Cathay Pacific in 2023 was HKD 15,125 million, compared to a loss of HKD 6,622 million in 2022, indicating a strong recovery[58]. - The company reported a profit of HKD 9,790 million for the year ended December 31, 2023, compared to a loss of HKD 6,622 million in 2022[46]. - Total comprehensive income for the year was HKD 7,937 million, a significant improvement from a loss of HKD 8,440 million in the previous year[47]. Revenue Breakdown - Cathay Pacific's passenger revenue reached HKD 55.95 billion, an increase of 308.8% compared to 2022[15]. - Passenger service revenue reached HKD 61,437 million, up 328.6% from HKD 14,333 million in 2022[33]. - Cargo service revenue decreased by 16.2% to HKD 25,606 million from HKD 30,554 million in 2022[33]. - Cargo revenue for Cathay Pacific in 2023 was HKD 22.16 billion, a decrease of 17.9% from 2022[15]. Operational Metrics - The available tonne-kilometers increased by 110.1% to 21,225 million from 10,100 million in 2022[4]. - The total available seat-kilometers surged by 326.8% to 85,607 million from 20,056 million in 2022[4]. - The passenger load factor improved to 85.7%, up by 12.1 percentage points from 73.6% in 2022[4]. - The overall cargo tonnage increased by 19.7% to 1.381 million tons in 2023[15]. - The number of passengers carried in 2023 was 18 million, averaging 49,300 passengers per day, a 541.4% increase from 2022[15]. Debt and Financial Health - The net debt ratio decreased to 0.88 times from 0.92 times in 2022, reflecting a reduction in net borrowings by 10.3% to HKD 52,764 million[2]. - Total borrowings decreased by 11.4% to HKD 68,294 million, with net borrowings down 10.3% to HKD 52,764 million[40]. - The debt-to-equity ratio improved from 0.71 to 0.69, indicating a stronger balance sheet position[40]. - The company's equity attributable to shareholders decreased by 5.9% to HKD 60,260 million, impacted by a profit of HKD 9,789 million and various other factors[40]. Workforce and Employment - The workforce increased by 15% or 3,000 employees in 2023, with nearly 2,000 former employees rehired[12]. - The company plans to increase its workforce by approximately 5,000 employees in 2024, a 20% increase from 2023[17]. - The company employed over 23,800 staff globally as of December 31, 2023, with approximately 19,600 based in Hong Kong[42]. Strategic Initiatives - The group plans to distribute a dividend of HKD 0.43 per ordinary share, the first since 2019, to be paid on May 2, 2024[7]. - Cathay Pacific has initiated a share buyback program, repurchasing 50% of the preferred shares for HKD 9.75 billion in December 2023[8]. - The company plans to expand its sustainable aviation fuel supply chain in mainland China in partnership with State Power Investment Corporation[42]. - The company aims to enhance customer experience by reopening most airport lounges and launching a lounge in Shekou, Shenzhen[13]. Environmental Impact - The greenhouse gas emissions rose to 10.6 million tonnes CO2 equivalent, an increase of 116.3% from 4.9 million tonnes in 2022[4]. Future Outlook - Passenger flights are expected to return to 80% of pre-pandemic levels by Q2 2024, with ticket prices normalizing throughout the remainder of 2024[9]. - Cathay Pacific aims to restore passenger flight operations to 80% of pre-pandemic levels by Q2 2024 and 100% by Q1 2025[17]. - The company plans to introduce new cabin products over the next three years, including a new business class and first-class experience[17]. Corporate Governance - The company has adhered to all corporate governance codes as per the listing rules throughout the year[92]. - All directors confirmed compliance with the securities trading code and the standard code for directors[92]. - The financial results for the year ending December 31, 2023, have been reviewed by the audit committee[92].

Financial Performance - The group reported a revenue of HKD 43,593 million for the six months ended June 30, 2023, representing a 135.0% increase compared to HKD 18,551 million in the same period of 2022[5]. - Cathay Pacific's attributable profit to shareholders was HKD 4,268 million, a significant turnaround from a loss of HKD 4,999 million in the previous year[5]. - The basic earnings per share increased to HKD 61.5, compared to a loss of HKD 82.3 in the same period last year, marking a 143.8% improvement[5]. - Cathay Pacific recorded a profit of HKD 4.26 billion in the first half of 2023, compared to a loss of HKD 4.99 billion in the same period of 2022[8]. - The net profit after tax for the first half of 2023 was HKD 333 million, a recovery from a loss of HKD 824 million in the same period last year[21]. - The company reported a profit of HKD 4,268 million for the six months ended June 30, 2023, compared to a loss of HKD 4,999 million in the same period of 2022, indicating a turnaround in performance[47]. - The total comprehensive income for the period was HKD 4,268 million, compared to a loss of HKD 4,999 million in the prior year[35]. - The company reported a significant increase in employee expenses to HKD 6,612 million from HKD 5,057 million, an increase of 31%[43]. Operational Metrics - The group’s available tonne-kilometers (ATK) increased by 211.2% to 9,628 million, while available seat-kilometers (ASK) surged by 1,111.3% to 37,053 million[6]. - The passenger load factor improved to 87.2%, up by 28.0 percentage points from 59.2% in the previous year[6]. - The average daily passenger count reached 43,180, up 2,233.1% compared to the same period in 2022[9]. - The total number of passengers carried in the first half of 2023 reached 7.8 million, averaging 43,184 passengers per day, a 2,233.1% increase compared to the same period in 2022[12]. - The average load factor for Hong Kong Express in the first half of 2023 was 85.5%, an increase of 67 percentage points compared to the same period in 2022[20]. - The company operated flights to 70 destinations with a capacity reaching 50% of pre-pandemic levels by March 2023[12]. Cargo Operations - Cargo revenue tonne-kilometers increased by 83.0% to 3,886 million, reflecting strong demand in the air freight sector[6]. - Cargo volume increased by 83% year-on-year, with total cargo tonnage rising by 23.8% to 651,000 tons[8]. - Cargo revenue for the first half of 2023 was HKD 10.74 billion, a decrease of 11.6% year-on-year[9]. - The cargo load factor decreased to 63.8% from 75.8% in the first half of 2022[8]. - The cargo revenue yield decreased by 51.7% to HKD 2.76 per ton-kilometer[8]. - Available cargo tonne-kilometers increased by 117.6% to 6,095 million in the first half of 2023, while the load factor decreased by 12.0 percentage points to 63.8%[18]. Fleet and Staff - The fleet consisted of 225 aircraft, with 42 new passenger aircraft expected to join in the coming years[4]. - The average age of the fleet was 11.0 years, slightly down from 11.3 years in the previous year, indicating ongoing fleet modernization efforts[6]. - The group employed over 21,900 staff globally, with approximately 18,100 based in Hong Kong as of June 30, 2023[4]. - The average age of the fleet is 11.0 years, with a total of 136 aircraft owned and 28 leased as of June 2023[7]. Financial Stability - The net debt decreased by 24.2% to HKD 44,565 million from HKD 58,829 million, indicating improved financial stability[5]. - The group’s available unrestricted cash amounted to HKD 28,899 million, including HKD 24,099 million in cash and HKD 4,913 million in undrawn credit facilities[38]. - The debt-to-equity ratio improved from 0.71 times to 0.50 times, indicating a stronger balance sheet position[38]. - The company has available unrestricted cash of HKD 28,896 million as of June 30, 2023, compared to HKD 27,188 million at the end of 2022, indicating an increase of about 6.3%[74]. Future Plans and Strategies - The group aims to restore its passenger capacity to 70% of pre-pandemic levels by the end of 2023, serving 80 destinations[10]. - The group expects to receive five new aircraft in the second half of 2023, following the delivery of five new aircraft in the first half[7]. - The company plans to replace eight Airbus A300-600F freighters with eight second-hand Airbus A330F freighters by 2024[7]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[43]. - The company is collaborating with the National Energy Investment Group to promote the sustainable aviation fuel supply chain in mainland China[27]. Awards and Recognition - Cathay Pacific's premium customer service received 12 awards, including the "Excellence in Service Award" at the 2022 Quality Customer Service Awards[16]. - Cathay Pacific was recognized as one of the top 25 airlines globally by AirlineRatings.com, ranking 9th[17]. - Cathay Pacific received multiple awards in 2023, including recognition for its commitment to sustainable tourism and diversity[30]. Sustainability Initiatives - Cathay Pacific has reduced single-use plastic usage by 56% compared to 2018 levels and is establishing new plastic and waste reduction targets[28]. - The company processed 28 million items of laundry in the first half of 2023, a significant increase from 12 million items in the same period of 2022[25]. - The company is set to host the International Cargo Symposium in March 2024, emphasizing its commitment to the air cargo sector[18]. Corporate Governance and Compliance - The company complied with all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules during the reporting period[92]. - The company acknowledges potential risks and uncertainties affecting future performance, including economic conditions and geopolitical factors[97]. - The company emphasizes that forward-looking statements are based on various assumptions and may not guarantee future results[97].

Financial Performance - The revenue for the first half of 2023 reached HKD 43,593 million, a significant increase of 135.0% compared to HKD 18,551 million in the same period of 2022[2] - Cathay Pacific reported a profit attributable to shareholders of HKD 4,268 million, a turnaround from a loss of HKD 4,999 million in the previous year, representing an improvement of HKD 9,267 million[2] - The basic earnings per share increased to HKD 61.5, up 143.8% from a loss of HKD 82.3 per share in the same period last year[2] - The company reported a net profit of HKD 4,268 million for the first half of 2023, compared to a net loss of HKD 4,999 million in the same period last year[31] - The airline's profit before tax for the first half of 2023 was HKD 4,707 million, compared to a loss of HKD 5,348 million in the previous year[40] - The group achieved a net profit of HKD 4,268 million attributable to shareholders, a significant recovery from a loss of HKD 4,999 million in the prior year[40] - The adjusted profit before tax for the first half of 2023 was HKD 4,890 million, a significant improvement from a loss of HKD 1,544 million in the same period of 2022, representing a change of HKD 6,434 million[25] Operational Metrics - The available tonne-kilometers (ATK) increased by 211.2% to 9,628 million, compared to 3,094 million in the previous year[4] - The passenger load factor improved to 87.2%, an increase of 28.0 percentage points from 59.2% in the same period last year[4] - The available seat-kilometers (ASK) surged by 1,111.3% to 37,053 million, compared to 3,059 million in the previous year[4] - The number of passengers carried reached 7.8 million, averaging 43,184 passengers per day, a 2,213.1% increase compared to the first half of 2022[7] - Passenger service revenue reached HKD 27,563 million, while cargo service revenue was HKD 12,432 million, indicating strong recovery in both segments[31] Cost and Expenses - Non-fuel costs for the first half of 2023 were HKD 24.639 billion, a 53.5% increase compared to the same period in 2022[8] - Total fuel costs increased by HKD 6.085 billion, or 147.8%, compared to the first half of 2022[8] - The total operating expenses for Cathay Pacific increased by 81.4% to HKD 38,403 million for the six months ended June 30, 2023, compared to HKD 21,173 million in the same period of 2022[24] - Cathay Pacific's operating expenses increased due to higher fuel prices and operational costs, impacting overall profitability[40] Debt and Financial Stability - The net debt decreased by 24.2% to HKD 44,565 million from HKD 58,829 million at the end of 2022[3] - Total borrowings decreased to HKD 68.664 billion, a reduction of 10.9%, with net borrowings decreasing by 24.2% to HKD 44.656 billion[28] - The net debt-to-equity ratio decreased from 0.71 times to 0.50 times, reflecting improved financial stability[28] - The company's available unrestricted cash amounted to HKD 28.896 billion, including HKD 24.099 billion in cash and HKD 4.913 billion in undrawn credit facilities[28] Future Outlook and Expansion - The group expects to receive five new aircraft in the second half of 2023, enhancing fleet capacity[5] - Passenger capacity is expected to reach 70% of pre-pandemic levels by the end of 2023, serving 80 destinations, with a goal of 100% by the end of 2024[10] - The group anticipates further increases in capacity and flight frequencies to meet rising passenger demand[6] - The company is focusing on talent acquisition from the Greater Bay Area to support its business expansion[30] Environmental Initiatives - The company has successfully offset over 300,000 tons of carbon dioxide through its voluntary carbon offset program since its launch in 2007[30] - Cathay Pacific has signed a memorandum of understanding with State Power Investment Corporation to develop a sustainable aviation fuel supply chain in mainland China[30] Corporate Governance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules during the reporting period[59] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[62] Miscellaneous - The company resumed seasonal flights to Christchurch, New Zealand, starting December 16, marking the first seasonal flight restoration since the pandemic[18] - The company announced the resumption of three weekly flights between Hong Kong and Johannesburg starting August 1, reconnecting Hong Kong with Africa[18] - The group recognized a profit of HKD 1.929 billion from its stake in Air China due to a reduction in ownership from 18.13% to 16.26% after a share issuance[29] - The interim report for 2023 will be published on or before August 24, 2023, and printed copies will be sent to shareholders who opted for them on August 25, 2023[60] - The company acknowledges that forward-looking statements may be subject to risks and uncertainties, including economic conditions and geopolitical factors[61]

Financial Performance - The group reported a revenue of HKD 51,036 million for 2022, an increase of 12.0% compared to HKD 45,587 million in 2021[4]. - Cathay Pacific's attributable loss to shareholders was HKD (6,548) million, representing an increase of 18.5% from HKD (5,527) million in the previous year[4]. - The group achieved a profit of HKD 2.26 billion in the second half of 2022, but incurred a loss of HKD 15.49 billion for the first half of the year[8]. - Cathay Pacific recorded a loss of HKD 6.54 billion for the year 2022, compared to a loss of HKD 5.52 billion in 2021[8]. - The company reported a significant increase in sales from North Asia, generating HKD 34,456 million in 2022, up from HKD 31,974 million in 2021, marking a growth of 7.8%[160]. - The company reported a net loss after tax of HKD 1.36 billion in 2022, compared to a loss of HKD 1.98 billion in 2021, reflecting a 31.3% improvement[37]. - The company reported a loss of HKD 6,548 million for the year, compared to a loss of HKD 5,527 million in 2021, representing a 18.5% increase in losses[156]. - The company incurred financial expenses of HKD 3,074 million, an increase from HKD 2,704 million in the previous year[152]. - The company reported a total comprehensive loss for the year amounted to HKD 8,365 million, compared to a total comprehensive loss of HKD 1,538 million in 2021[152]. Operational Statistics - The passenger load factor improved to 73.6%, up by 42.5 percentage points from 31.1% in 2021[5]. - Available seat kilometers increased by 51.6% to 20,056 million from 13,228 million in 2021[5]. - The average age of the fleet increased to 10.8 years from 10.5 years in 2021[5]. - The operating statistics showed a decrease in available ton kilometers by 11.0% to 10,100 million from 11,354 million in 2021[5]. - In 2022, Cathay Pacific carried 2.8 million passengers, with an average daily load of 7,682 passengers, representing a 291.1% increase compared to 2021[12]. - The overall cargo tonnage decreased by 13.4% to 1,154,000 tons, with a cargo load factor of 70.6% compared to 81.4% in 2021[12]. - The airline's available seat capacity is expected to reach approximately 70% of pre-pandemic levels by the end of 2023, with a goal to fully recover by the end of 2024[9]. - The company operated approximately 3,000 additional passenger flights in Q4 2022, with capacity reaching one-third of pre-pandemic levels[12]. Environmental Initiatives - The greenhouse gas emissions reduced by 12.5% to 4.9 million tons CO2 equivalent from 5.6 million tons in the previous year[5]. - Cathay Pacific aims to achieve a mid-term target of using sustainable aviation fuel for 10% of total fuel consumption by 2030[138]. - The company signed a purchase agreement with Aemetis to start procuring blended sustainable aviation fuel from 2025[138]. - Cathay Pacific's plastic recycling increased significantly by 1,147.2% to 21,016 kg in 2022, compared to 1,685 kg in 2021[136]. - The company reduced single-use plastic consumption by 56% as of 2022, surpassing its goal of halving usage by the end of 2022[140]. - Cathay Pacific offset 38,399 tons of CO2 in 2022 through its voluntary "Fly Greener" carbon offset program, with over 300,000 tons purchased since its launch in 2007[140]. Fleet and Capacity Expansion - The group plans to add 48 new aircraft to its fleet in the coming years[3]. - The company received five new aircraft in 2022 and expects to receive eleven more in 2023, enhancing fleet modernization and efficiency[32]. - As of December 31, 2022, Cathay Pacific operated a fleet of 181 aircraft, with a total of 222 aircraft across the group[31]. - The company plans to replace nine Airbus A300-600F freighters with nine second-hand Airbus A330F freighters by 2024[33]. Financial Management and Debt - The net debt to equity ratio improved to 0.92 from 0.98 in the previous year, a decrease of 0.06 times[4]. - As of December 31, 2022, the group had unrestricted cash reserves of HKD 27.2 billion[8]. - The company issued 1.676 billion A shares, raising RMB 15 billion, resulting in a dilution of its stake in Air China from 18.13% to 16.26%[41]. - The company recorded a significant loss of HKD 6.29 billion from associates, primarily due to delays in confirmations[8]. - The company has a total borrowing of HKD 100 billion, with a significant portion in fixed and floating interest arrangements[60]. Customer Engagement and Loyalty Programs - The new Marco Polo Club program was launched, merging with Asia Miles, resulting in over 13 million members[13]. - The company aims to enhance customer loyalty through data-driven insights into customer preferences for its services[13]. - Membership redemption for Cathay Pacific flights increased by 153% year-on-year, while non-flight rewards rose by 43%[27]. - The company launched the "Cathay Miles" program, offering over 70,000 seats for passengers to redeem for flights[24]. Corporate Governance and Compliance - The company has adopted a self-developed corporate governance code, which is available on its website[86]. - The board of directors is responsible for the strategic leadership and oversight of the group, aiming to maximize returns for shareholders while considering the interests of business partners and other stakeholders[87]. - The company has established a risk management and internal control system, which is regularly reviewed for effectiveness[113]. - The audit committee is responsible for recommending the appointment of external auditors to the board for shareholder approval[117]. Community Engagement and Social Responsibility - The company donated nearly 390,000 items to support vulnerable communities in Hong Kong during 2022, including over 110 tons of surplus food[142]. - Employees contributed approximately 1,720 hours of volunteer work during the pandemic, supporting various non-profit organizations[143]. - The "Spare Change Donation" program has raised over HKD 200 million for UNICEF since its inception in 1991, with approximately HKD 810,000 raised in the most recent audited year[143].

Financial Performance - Cathay Pacific reported a loss attributable to shareholders of HKD 18,551 million for the six months ended June 30, 2022, an increase of 17.0% compared to HKD 15,854 million in the previous year[7]. - The loss per share for ordinary shares improved to HKD (4,999) from HKD (7,565), representing a decrease of 33.9%[7]. - Cathay Pacific Group reported a loss attributable to shareholders of HKD 4.999 billion for the first half of 2022, compared to a loss of HKD 7.556 billion in the same period of 2021[9]. - Passenger service revenue increased by 177.6% to HKD 2.068 billion, while cargo service revenue rose by 9.3% to HKD 12.148 billion[46]. - Total revenue for the group reached HKD 18.551 billion, reflecting a 17.0% increase from HKD 15.854 billion in the previous year[46]. - Operating loss before non-recurring items was HKD 1,253 million, significantly improved from a loss of HKD 4,532 million in the same period last year[55]. - The company reported a net loss from associates of HKD 2,726 million for the first half of 2022[64]. - The company recorded a loss of HKD 4,999 million for the six months ended June 30, 2022, compared to a loss of HKD 7,565 million in the same period of 2021, reflecting a 34% improvement[60]. Operational Metrics - The available seat kilometers (ASK) decreased by 30.5% to 3,094 million from 4,454 million year-on-year[8]. - The revenue passenger kilometers (RPK) surged by 277.7% to 67.6 million from 17.9 million year-on-year[8]. - The airline's passenger revenue increased by 177.6% year-on-year to HKD 2.068 billion in the first half of 2022, with a total of 335,000 passengers carried, representing a 113.4% increase compared to the previous year[10]. - The load factor for the first half of 2022 was 59.2%, significantly up from 18.9% in the same period of 2021, reflecting improved operational performance[15]. - The overall passenger load factor in the Americas region improved by 51.7 percentage points to 72.7% in the first half of 2022 compared to 21.0% in the previous year[16]. - The company aims to gradually increase passenger and cargo capacity to 25% and 65% of pre-pandemic levels by the end of 2022, respectively[12]. Cost and Expenses - The operating cost per available ton kilometer (including fuel) rose by 32.4% to HKD 5.88 from HKD 4.44[8]. - Non-fuel costs decreased by 4.9% to HKD 16.056 billion in the first half of 2022, while fuel costs increased by HKD 1.458 billion (or 54.8%) compared to the previous year[11]. - Fuel costs increased significantly, with total fuel costs amounting to HKD 4.618 billion, up from HKD 2.937 billion, driven by an 85.1% rise in average fuel prices[51]. - The cost per available tonne-kilometre (including fuel) rose by 32.4% to HKD 5.88, while the cost excluding fuel increased by 30.4% to HKD 5.19[48]. Fleet and Capacity - The company plans to add 51 new aircraft to its fleet in the coming years[6]. - The average age of the fleet increased to 11.3 years from 10.6 years[8]. - The fleet consisted of 188 aircraft as of June 30, 2022, with 69 aircraft parked outside Hong Kong due to operational considerations[29]. - The average age of the fleet is 11.3 years, with 12 aircraft on order for delivery in 2023 and beyond[30]. Cash and Liquidity - As of June 30, 2022, the company had available unrestricted cash of HKD 26.7 billion, aided by a loan extension from the Hong Kong government[11]. - Available unrestricted cash totaled HKD 26.7 billion, comprising HKD 17.29 billion in cash and HKD 9.53 billion in undrawn credit facilities[52]. - The company reported a net cash inflow from operating activities of HKD 5,636 million in 2022, up from HKD 1,425 million in 2021, marking a 296% increase[59]. Challenges and Outlook - The company continues to face significant challenges due to strict travel restrictions and quarantine requirements affecting crew operations[12]. - The recent adjustments to quarantine requirements for inbound travelers are expected to enhance travel demand, positively impacting future performance[12]. - The company has acknowledged potential risks affecting future performance, including the impact of the COVID-19 pandemic and changes in the economic environment[107]. Sustainability Initiatives - The company aims to achieve net-zero carbon emissions by 2050 and increase sustainable aviation fuel usage to 10% of total fuel consumption by 2030[42]. - Cathay Pacific has committed to halving its single-use plastic footprint by the end of 2022 and continues to work towards this three-year goal[43]. - The group aims to reduce ground emissions by 32% by 2030 and 55% by 2035, based on 2018 levels[43]. Employee and Community Engagement - The company plans to recruit over 4,000 frontline staff in the next 18 to 24 months to meet operational needs as global travel demand is expected to rise[13]. - Cathay Pacific has donated over 62,600 items, including blankets and masks, to communities in need during the first half of 2022[44]. - Cathay Pacific plans to recruit approximately 180 trainee pilots in 2022, with a goal of training over 1,000 local trainee pilots by 2025[44].

Financial Performance - Cathay Pacific's revenue for 2021 was HKD 45.587 billion, a decrease of 2.9% compared to 2020[4] - The company reported a net loss attributable to shareholders of HKD 5.527 billion in 2021, a 74.5% improvement from the HKD 21.648 billion loss in 2020[4] - Loss per share improved to HKD 0.951 in 2021, down 77.6% from HKD 4.243 in 2020[4] - The loss margin improved by 34.0 percentage points to 12.1% in 2021 compared to 46.1% in 2020[4] - Cathay Pacific's net debt decreased by 4.4% to HKD 70.570 billion in 2021[4] - Available unrestricted liquidity increased by 5.8% to HKD 30.250 billion in 2021[4] - Cathay Pacific Group recorded a loss attributable to shareholders of HKD 5.527 billion in 2021, compared to a loss of HKD 21.648 billion in 2020[6] - Cathay Pacific's attributable loss in 2021 was HKD 776 million, compared to a loss of HKD 12.195 billion in 2020[6] - The Group achieved a profit attributable to shareholders of HKD 2.038 billion in the second half of 2021, compared to a loss of HKD 7.565 billion in the first half of 2021[6] - Cathay Pacific achieved a profit attributable to shareholders of HKD 3.303 billion in the second half of 2021, compared to a loss of HKD 5.031 billion in the first half of 2021[6] - The 2021 loss included impairment and related expenses of HKD 832 million, mainly related to 12 aircraft[6] - Total revenue for the group decreased by 2.9% to HKD 45.587 billion, while Cathay Pacific's total revenue decreased by 1.3% to HKD 42.184 billion[39] - Operating expenses for the group decreased by 21.5% to HKD 46.037 billion, with employee costs decreasing by 28.4%[43] - Fuel costs (including hedging gains/losses) decreased by 38.2% to HKD 7.031 billion[43] - Cathay Pacific's cost per available tonne kilometer (including fuel) decreased by 6.3% to HKD 3.88[44] - The group's total operating expenses decreased by 20.9% to HKD 48.666 billion[43] - Cathay Pacific's passenger yield increased by 87.4% to HKD 1.055 per passenger kilometer[41] - Cargo yield increased by 33.1% to HKD 3.94 per tonne kilometer[41] - Cathay Pacific's impairment and related expenses amounted to HKD 777 million, primarily related to 9 aircraft expected not to return to substantial economic service before retirement or return to lessors[47] - The company's passenger revenue decreased by 61.6%, mainly due to a 79.5% drop in passenger volume, partially offset by an 87.4% increase in yield[48] - Cargo revenue increased by 31.8%, driven by a 33.1% rise in yield, partially offset by a 1.1% decrease in cargo volume[48] - Total fuel costs for 2021 were HKD 9,367 million, with fuel hedging gains of HKD 2,336 million, resulting in a net fuel cost of HKD 7,031 million[49] - Fuel consumption in 2021 was 15 million barrels, a 19.8% decrease from 2020, with a 22.3% reduction in available capacity[50] - Total assets as of December 31, 2021, were HKD 196,627 million, with property, plant, and equipment increasing by HKD 5,891 million, including HKD 5,674 million for aircraft and related equipment[51] - Borrowings decreased by 3.5% to HKD 89,854 million, with 51% being fixed-rate borrowings[52] - The company's unrestricted available liquidity as of December 31, 2021, was HKD 30,250 million, including HKD 19,284 million in liquid funds and HKD 11,105 million in committed unused credit facilities[52] - Net borrowings (after deducting liquid funds) decreased by 4.4% to HKD 70,570 million[52] - Cathay Pacific's net debt to equity ratio remained at 0.75x after excluding the impact of adopting HKFRS 16, and was 0.98x and 1.01x as of December 31, 2021, and December 31, 2020, respectively[55] - Cathay Pacific's shareholders' funds decreased by 1.4% to HKD 72.244 billion due to a loss of HKD 5.5 billion, partially offset by an increase in other comprehensive income of HKD 4 billion and the equity portion of guaranteed convertible bonds issued in February 2021 of HKD 500 million[55] - Total revenue for 2021 was HKD 45,587 million (USD 5,844 million), a decrease from HKD 46,934 million (USD 6,017 million) in 2020[116] - Cargo service revenue increased to HKD 35,814 million (USD 4,592 million) in 2021, up from HKD 27,890 million (USD 3,576 million) in 2020[116] - Passenger service revenue dropped significantly to HKD 4,357 million (USD 558 million) in 2021, compared to HKD 11,950 million (USD 1,532 million) in 2020[116] - Operating loss improved to HKD 1,443 million (USD 185 million) in 2021 from HKD 18,144 million (USD 2,326 million) in 2020[116] - Net loss for the year was HKD 5,526 million (USD 708 million), a significant improvement from HKD 21,647 million (USD 2,775 million) in 2020[116] - Property, plant, and equipment decreased to HKD 123,990 million (USD 15,896 million) in 2021 from HKD 131,925 million (USD 16,914 million) in 2020[117] - Total assets less current liabilities stood at HKD 153,492 million (USD 19,679 million) in 2021, down from HKD 157,850 million (USD 20,237 million) in 2020[117] - Net current liabilities improved to HKD 14,238 million (USD 1,825 million) in 2021 from HKD 19,157 million (USD 2,456 million) in 2020[117] - Shareholders' equity was HKD 72,249 million (USD 9,263 million) in 2021, slightly down from HKD 73,261 million (USD 9,392 million) in 2020[117] - Basic and diluted loss per share was HKD 95.1 cents (USD 12.2 cents) in 2021, compared to HKD 424.3 cents (USD 54.4 cents) in 2020[116] - Operating cash flow from business activities increased to HKD 8,835 million (USD 1,133 million) in 2021, compared to a negative HKD 14,291 million (USD 1,832 million) in 2020[119] - Net cash inflow from investment activities was HKD 493 million (USD 63 million) in 2021, a significant improvement from a negative HKD 11,758 million (USD 1,507 million) in 2020[119] - Net cash outflow from financing activities was HKD 6,932 million (USD 889 million) in 2021, compared to a net inflow of HKD 23,309 million (USD 2,988 million) in 2020[119] - Cash and cash equivalents increased by HKD 2,396 million (USD 307 million) in 2021, reaching HKD 8,573 million (USD 1,099 million) at year-end[119] - The company reported a net loss of HKD 5,527 million (USD 708 million) attributable to Cathay Pacific shareholders in 2021, an improvement from the HKD 21,648 million (USD 2,775 million) loss in 2020[121] - Total revenue from external customers was HKD 45,587 million (USD 5,844 million) in 2021, with Cathay Pacific contributing HKD 41,829 million (USD 5,363 million)[122] - Segment loss before restructuring costs, impairments, and related expenses was HKD 240 million (USD 31 million) in 2021[122] - Depreciation and amortization expenses totaled HKD 12,786 million (USD 1,639 million) in 2021[122] - Capital expenditures for property, plant, and equipment and intangible assets amounted to HKD 2,276 million (USD 292 million) in 2021[122] - The company issued HKD 526 million (USD 67 million) in convertible bonds during 2021[121] - Cathay Pacific's total revenue for 2021 was HK$49.197 billion, with sales to external customers contributing HK$46.934 billion[123] - The company reported a net loss of HK$21.648 billion for 2021, with Cathay Pacific's shareholders bearing a loss of HK$17.393 billion[123] - Revenue from North Asia, including Hong Kong and Mainland China, was HK$30.721 billion, accounting for the largest share of regional revenue[125] - Depreciation and amortization expenses totaled HK$14.421 billion, with Cathay Pacific contributing HK$12.756 billion[123] - The company recorded a profit of HK$210 million from the deemed disposal of a portion of its equity in Air China Cargo[126] - Financial expenses net amounted to HK$2.629 billion, with interest expenses on lease liabilities being HK$905 million[128] - The company's total assets for property, plant, and equipment, and intangible assets purchases were HK$5.418 billion[123] - Revenue from the Americas region decreased to HK$3.171 billion in 2021 from HK$3.944 billion in 2020[125] - The company recognized a net exchange gain of HK$69 million in 2021, compared to a net exchange loss of HK$295 million in 2020[127] - Cathay Pacific's total financial expenses, including interest and other charges, were HK$2.486 billion[128] Operational Performance - The company operated a total of 234 aircraft at the end of 2021, with 74 parked outside Hong Kong[3] - Cathay Pacific plans to add 53 new passenger aircraft to its fleet in the coming years[3] - The company employed 21,600 staff globally at the end of 2021, with 17,700 based in Hong Kong[3] - Cathay Pacific holds an 18.13% stake in Air China, the flag carrier of China[3] - Available ton kilometers decreased by 22.3% to 11,354 million in 2021 compared to 14,620 million in 2020[5] - Available seat kilometers dropped significantly by 61.8% to 13,228 million in 2021 from 34,609 million in 2020[5] - Revenue passenger kilometers plummeted by 79.5% to 4,120 million in 2021 from 20,079 million in 2020[5] - Passenger load factor decreased by 26.9 percentage points to 31.1% in 2021 from 58.0% in 2020[5] - Cargo yield increased by 33.1% to HKD 3.94 in 2021 from HKD 2.96 in 2020[5] - Cost per available ton kilometer (excluding fuel) decreased by 2.6% to HKD 3.32 in 2021 from HKD 3.41 in 2020[5] - Greenhouse gas emissions reduced by 20.0% to 5.6 million tons of CO2 equivalent in 2021 from 7.0 million tons in 2020[5] - Lost time injury rate improved by 64.5% to 0.81 per 100 full-time equivalent employees in 2021 from 2.28 in 2020[5] - Aircraft utilization decreased by 20.9% to 3.4 hours per day in 2021 from 4.3 hours in 2020[5] - Fleet average age increased slightly by 0.4 years to 10.5 years in 2021 from 10.1 years in 2020[5] - Cathay Pacific has received 5 Airbus A321neo aircraft and plans to add 16 more by the end of 2023[6] - Cathay Pacific aims to increase the use of sustainable aviation fuel to 10% of total fuel consumption by 2030[6] - The Group is committed to achieving net-zero carbon emissions by 2050[6] - Cathay Pacific's cargo business performed strongly in 2021, with cargo revenue reaching HKD 32.377 billion, a 31.8% increase compared to 2020[7] - The company's passenger revenue in 2021 decreased to HKD 4.346 billion, a 61.6% decline compared to 2020[7] - Cathay Pacific carried 717,000 passengers in 2021, a 84.5% decrease compared to 2020, with an average daily passenger count of 1,965[7] - The passenger load factor in 2021 was 31.1%, compared to 58% in 2020[7] - Non-fuel costs decreased by 24.4% to HKD 37.708 billion in 2021[7] - Cathay Pacific's fuel costs increased by HKD 927 million (11.9%) compared to 2020, reflecting higher oil prices[7] - Hong Kong Express recorded a loss of HKD 1.978 billion in 2021, compared to a loss of HKD 1.723 billion in 2020[7] - Air China, which reports its accounts with a three-month delay, performed worse in 2021 compared to 2020 due to the impact of the COVID-19 pandemic[7] - Cathay Pacific achieved positive cash flow in the second half of 2021, driven by strong cargo performance and effective cash and cost management[7] - The company operated six "preighters" (partially converted Boeing 777-300ER passenger aircraft) to maximize cargo capacity[7] - The company's unrestricted usable cash balance as of December 31, 2021, was HKD 30.3 billion, with HKD 6.7 billion raised through convertible bonds and USD 650 million (equivalent to HKD 5.1 billion) through medium-term note issuance[8] - The company expects passenger capacity to remain at around 2% of pre-pandemic levels and cargo capacity to potentially drop to less than one-third of pre-pandemic levels if current restrictions persist[8] - In 2021, the company's crew members spent over 62,000 nights in quarantine hotels and over 11,000 nights at the Penny's Bay Quarantine Facility, with over 1,000 employees involved[8] - The company's cargo performance was strong, with October 2021 recording the highest cargo volume since the pandemic began, and November 2021 seeing a record number of cargo-only passenger flights[10] - The company's cargo load factor remained high, averaging 80% during the peak cargo season in the second half of 2021[10] - All crew members have been fully vaccinated, with a 100% vaccination rate in 2021, and over 230,000 tests conducted[10] - The company plans to leverage opportunities from the Greater Bay Area and the opening of the third runway at Hong Kong International Airport[8] - The company is committed to achieving net-zero carbon emissions by 2050 and enhancing its digital capabilities[8] - The company introduced the premium travel lifestyle brand "Cathay" and aims to continue offering new services to enhance passenger experience[8] - The company's passenger business was severely impacted by the pandemic, with passenger capacity significantly below pre-pandemic levels by the end of 2021[9] - Cathay Pacific's passenger revenue in 2021 was HKD 4.346 billion, a 61.6% decrease compared to 2020[12] - Passenger traffic measured in revenue passenger kilometers (RPK) decreased by 79.5% in 2021[12] - Available seat kilometers (ASK) decreased by 61.8% in 2021, with a load factor of 31.1%, down 26.9 percentage points[12][15] - Cathay Pacific carried 717,000 passengers in 2021, averaging 1,965 passengers per day, an 84.5% decrease from 2020[12] - The yield per passenger kilometer increased by 87.4% to HKD 1.055 in 2021[12] - By the end of 2021, passenger flight capacity was only 11.4% of pre-pandemic levels[13] - The Americas region saw a 54.7% decrease in ASK, with a load factor of 40.5%, down 13.8 percentage points[15] - The Southwest Pacific region experienced a 40.4% decrease in ASK, with a load factor of 9.0%, down 51.7 percentage points[15] - The North Asia region's ASK decreased by 71.4%, with a load factor of 28.1%, down 32.9 percentage points[15] - The Southeast Asia region's ASK decreased by 76.1%, with a load factor of 22.2%, down 34.9 percentage points[15] - Launched WhatsApp customer inquiry and support service in Hong Kong in January 2021, expanding globally to allow customers to contact the company via social messaging platforms for flight booking inquiries[16] - Partnered with Hong Kong Airport Authority, The Commons Project, and Prenetics to test the digital health platform CommonPass on flights from Hong Kong to Los Angeles in March 2021, and later on flights between Hong Kong and Singapore in July 2021, becoming the first airline in the Asia-Pacific region to test official vaccination records in real flight environments[

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Financial Performance - The group's revenue for 2020 was HKD 46,934 million, a decrease of 56.1% compared to HKD 106,973 million in 2019[7]. - Cathay Pacific reported a loss attributable to shareholders of HKD 21,648 million in 2020, compared to a profit of HKD 1,691 million in 2019, representing a decline of HKD 23,339 million[7]. - The company reported a net loss of HKD 21,648 million for the year 2020, compared to a profit of HKD 1,691 million in 2019, marking a substantial year-over-year decline[147]. - The total comprehensive income for the year was significantly affected by the pandemic, leading to substantial losses across various segments[155]. - The company reported a total comprehensive loss of HKD 20,654 million for the year[142]. - The operating loss for the year was HKD 58,639 million, compared to an operating profit of HKD 3,441 million in 2019[142]. - The company incurred impairment and related expenses of HKD 28,815 million primarily related to 34 aircraft expected to be retired or returned to lessors[57]. - The company reported a significant impairment and related expenses of HKD (4,056) million, reflecting the challenging market conditions faced during the year[148]. Passenger and Cargo Operations - The passenger load factor decreased to 58.0% in 2020 from 82.3% in 2019, a drop of 24.3 percentage points[8]. - Passenger revenue for 2020 decreased by 84.3% to HKD 11.313 billion, with passenger numbers dropping by 86.9% compared to 2019[11]. - Cargo revenue ton kilometers decreased by 26.5% to 8,309 million in 2020 from 11,311 million in 2019[8]. - Cathay Pacific's cargo revenue for 2020 was HKD 24.57 billion, an increase of 16.2% compared to 2019, reflecting an imbalance between available cargo capacity and demand[12]. - The cargo load factor increased by 8.9 percentage points, with cargo yield rising by 58.3% to HKD 2.96[48]. - The company carried 460,000 passengers in 2020, a decrease of 86.9% compared to 2019, with revenue dropping 84.3% to HKD 11.31 billion[22]. Restructuring and Cost Management - The company implemented a corporate restructuring plan, resulting in a cost of approximately HKD 2.4 billion, saving around HKD 0.5 billion monthly[11]. - The restructuring plan involves a reduction of 8,500 positions, approximately 24% of the workforce, to improve operational efficiency[21]. - The company plans to maintain cash preservation measures, with senior management salary reductions continuing throughout 2021[13]. - The company announced a capital restructuring plan of HKD 39 billion in June 2020, supported by the Hong Kong SAR government and shareholders[10]. Government Support - The company received government support of HKD 2.689 billion related to the COVID-19 pandemic[10]. - The group received government support of HKD 16.89 billion related to the COVID-19 pandemic[44]. - The company received approximately HKD 26.89 billion in government support related to the COVID-19 pandemic[16]. Fleet and Operations - The average age of the fleet was 10.1 years in 2020, slightly down from 10.3 years in 2019[8]. - The group plans to delay the delivery of 60 new aircraft due to the pandemic[5]. - The company has reached an agreement with Airbus to delay the delivery of A350-900 and A350-1000 aircraft to 2023, and A321neo deliveries to 2025[12]. - The company ceased operations of Cathay Dragon by the end of 2020, affecting approximately 8,500 jobs[10]. Environmental and Social Responsibility - Cathay Pacific aims to achieve net zero carbon emissions by 2050 and is collaborating with governments and the UN to meet this goal[73]. - The company has set a target to halve its single-use plastic footprint by the end of 2022, based on 2018 levels, having already removed over 46 million single-use plastic items[73]. - The "ChangeMakers" program continued in 2020, focusing on environmental protection, youth development, and cultural integration[74]. - The company collected and donated over 648 tons of surplus food in 2020[74]. Corporate Governance - The company adheres to high standards of corporate governance, reflecting a commitment to integrity, transparency, and responsible conduct[103]. - The board of directors is responsible for the strategic leadership and oversight of the group, ensuring maximum returns for shareholders while considering the interests of stakeholders[103]. - The company has established various committees, including audit, remuneration, and risk management, to assist in fulfilling its responsibilities[104]. Financial Position and Liabilities - The total assets of the group as of December 31, 2020, amounted to HKD 204.57 billion, with an increase in property, plant, and equipment by HKD 8.72 billion during the year[62]. - The group’s total liabilities increased significantly, with borrowings and lease repayments totaling HKD (30,134) million in 2020, up from HKD (18,785) million in 2019[146]. - The adjusted net debt ratio, excluding lease liabilities, improved to 0.75 in 2020 from 0.99 in 2019[179]. Future Outlook - The company anticipates that passenger capacity in the first half of 2021 will be less than 25% of pre-pandemic levels, with overall capacity expected to be down by over 50% for the year[13]. - The management's basic scenario assumes passenger traffic will start to recover in the second half of 2021 but will not return to pre-crisis levels until 2024[170]. - The company plans to focus on market expansion and new product development in the upcoming year[142].