国泰航空(00293) - 2025 - 中期财报

Financial and Operating Summary This section provides a concise overview of the Group's financial performance, operating statistics, and fleet information for the first half of 2025 Group Financial Statistics For the six months ended June 30, 2025, Cathay Group reported robust financial performance with a 9.5% increase in revenue and a slight 1.1% rise in profit attributable to shareholders 2025 First Half Key Financial Results | Metric | 2025 First Half | 2024 First Half | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 54.309 billion | HKD 49.604 billion | +9.5% | | Profit Attributable to Cathay Group Shareholders | HKD 3.651 billion | HKD 3.613 billion | +1.1% | | Earnings Per Ordinary Share (Basic) | 56.7 HK cents | 52.4 HK cents | +8.2% | | Dividend Per Ordinary Share | 20 HK cents | 20 HK cents | – | 2025 June 30 Key Financial Position | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Funds Attributable to Cathay Group Shareholders | HKD 51.654 billion | HKD 52.500 billion | -1.6% | | Net Borrowings | HKD 56.342 billion | HKD 57.941 billion | -2.8% | | Available Unrestricted Liquidity | HKD 21.504 billion | HKD 19.073 billion | +12.7% | | Net Debt to Equity Ratio | 1.09 times | 1.10 times | -0.01 times | Operating Statistics In the first half of 2025, the Group's overall capacity (Available Tonne Kilometers) increased by 15.9% year-on-year, with Cathay Pacific's passenger load factor improving to 84.8% - Cathay Pacific's passenger numbers increased by 27.8% year-on-year to 13.627 million, with the passenger load factor rising from 82.4% to 84.8%[10] - Cathay Cargo's carried cargo volume increased by 11.4% year-on-year to 801 thousand tonnes, though the cargo load factor slightly decreased from 59.9% to 58.6%[10] - HK Express's passenger numbers increased by 33.5% year-on-year to 3.791 million, but the passenger load factor declined from 85.0% to 78.9%[10] Fleet Information As of June 30, 2025, Cathay Group operated a total of 234 aircraft and had 93 new aircraft on order, demonstrating its commitment to future fleet expansion Group Fleet Size and Orders (as of June 30, 2025) | Airline | Aircraft in Operation | Aircraft on Order | | :--- | :--- | :--- | | Cathay Pacific | 179 | 71 | | HK Express | 41 | 22 | | Air Hong Kong | 14 | 0 | | Group Total | 234 | 93 | - The 93 new aircraft on order include 30 A330-900s, 21 777-9 passenger aircraft, and 6 A350F cargo aircraft, aimed at fleet modernization and efficiency enhancement[12] Chairman's Letter This section outlines the Group's performance, key business segment results, and future outlook, highlighting strategic investments and market confidence Cathay Group Performance In the first half of 2025, Cathay Group reported a slight year-on-year increase in profit attributable to shareholders, driven by increased passenger volumes, stable cargo performance, and lower fuel prices 2025 First Half Performance Overview | Metric | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Profit Attributable | HKD 3.651 billion | +1.1% | | Earnings Per Ordinary Share | 56.7 HK cents | +8.2% | | Interim Dividend | 20 HK cents per share | Flat | - The Group repurchased convertible bonds worth HKD 4.558 billion in January 2025, representing approximately 68% of the total issued amount[16] - As of June 30, 2025, the Group's available unrestricted liquidity balance was HKD 21.504 billion[16] Performance of the Four Core Businesses Cathay Pacific's passenger revenue grew by 14.0%, while Cathay Cargo's revenue increased by 2.2%, demonstrating resilience, though HK Express recorded a pre-tax loss due to market factors - Cathay Pacific's passenger revenue was HKD 34.208 billion, a 14.0% year-on-year increase, carrying 13.6 million passengers, up 27.8% year-on-year[17] - Cathay Cargo's revenue was HKD 11.141 billion, a 2.2% year-on-year increase, showcasing business adaptability[18] - HK Express recorded a pre-tax loss of HKD 524 million, compared to a profit of HKD 66 million in the same period last year, primarily due to a temporary slowdown in Japan travel demand and new routes still maturing[19] Performance of Subsidiaries and Associates Air Hong Kong maintained stable performance, while subsidiaries providing services to airlines saw improved results, and associate companies like Air China also showed better performance - Air Hong Kong recorded a pre-tax profit of HKD 474 million, largely stable compared to HKD 488 million in the same period last year, maintaining robust performance[20] - Associate companies' performance improved, mainly benefiting from Air China's enhanced revenue management and cost control, as well as Air Cargo's business expansion[20] Outlook The Group expresses confidence in the future, investing over HKD 100 billion in its fleet, products, and digital innovation, with strong travel demand for Cathay Pacific and expected long-term profitability for HK Express - The Group is investing over HKD 100 billion in its fleet, cabins, lounges, and digital innovation, reaffirming its commitment to the Hong Kong International Aviation Hub[21] - HK Express faces short-term challenges, but flight bookings to Japan have rebounded, and new routes, despite needing time to develop, have shown enthusiastic initial responses, with long-term profitability expected[21] Business Review This section provides a detailed review of Cathay Pacific, Cathay Cargo, Lifestyle business, and the performance of key subsidiaries and associates, alongside the Group's strategic leadership directions Cathay Pacific In the first half of 2025, Cathay Pacific's passenger business continued its recovery, with revenue increasing by 14.0% and passenger load factor improving to 84.8% Cathay Pacific 2025 First Half Passenger Performance | Metric | 2025 First Half | Year-on-Year Change | | :--- | :--- | :--- | | Passenger Revenue | HKD 34.208 billion | +14.0% | | Available Seat Kilometers (ASK) | 66.792 billion | +26.3% | | Revenue Passenger Kilometers (RPK) | 56.651 billion | +30.0% | | Passengers Carried | 13.6 million | +27.8% | | Passenger Load Factor | 84.8% | +2.4 percentage points | | Passenger Yield | 60.4 HK cents | -12.3% | - The company launched passenger services to Hyderabad, Dallas Fort Worth, Urumqi, Rome, and Munich, and increased frequencies on other routes across its global network[24] - Awarded among the top three best airlines globally by Skytrax, also receiving accolades for "World's Best Economy Class" and "World's Best Inflight Entertainment"[14][36] Cathay Cargo In the first half of 2025, Cathay Cargo's revenue reached HKD 11.141 billion, a 2.2% increase, demonstrating resilience despite market uncertainties like tariff changes Cathay Cargo 2025 First Half Performance | Metric | 2025 First Half | Year-on-Year Change | | :--- | :--- | :--- | | Cargo Revenue | HKD 11.141 billion | +2.2% | | Available Freight Tonne Kilometers (AFTK) | 7.336 billion | +8.1% | | Cargo Carried | 801 thousand tonnes | +11.4% | | Cargo Load Factor | 58.6% | -1.3 percentage points | | Cargo Yield | HKD 2.59 | -3.4% | - Despite the impact of increased US tariffs and the removal of de minimis exemptions on e-commerce demand, the company offset some negative effects by increasing other cargo shipments[42] - Awarded "Cargo Operator of the Year" by Air Transport World (ATW), recognizing its outstanding operational performance[57] Lifestyle Cathay's Lifestyle business continued to grow in the first half of 2025, with increasing active membership and expanded product offerings across miles, hotels, retail, and experiences - Active Cathay membership continues to grow, with brand awareness and member engagement enhanced through initiatives like the "Cathay Member Premium Awards"[59] - Joint credit card partnerships with Standard Chartered Bank performed well in Asia Pacific, with re-launches in the US and Macau, while collaborations with fintech companies Mox Bank and Neo Financial helped acquire new customer segments[61][63] - The "Miles Rewards" program expanded to 89 partner brands and launched a global online shopping platform, "Miles Rewards Hub"; Cathay Holidays hotel platform expanded into four new markets[64][65] - Successfully built in-house retail media sales capabilities, reducing reliance on agencies, and secured comprehensive media partnerships with premium brands like The Macallan[71][76] Performance and Business Review of Key Subsidiaries and Associates The Group's subsidiaries and associates showed varied performance in the first half of 2025, with HK Express recording a loss due to market factors, while Air Hong Kong and aviation service providers improved HK Express Airways Limited HK Express expanded aggressively in the first half of 2025, launching nine new routes, but recorded a pre-tax loss of HKD 524 million due to factors like a temporary slowdown in Japan travel demand HK Express 2025 First Half Operating Results | Metric | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 3,171 | -0.1% | | Operating Expenses | (3,695) | +18.8% | | (Loss)/Profit Before Net Finance Costs and Tax | (524) | -893.9% | - Launched nine new routes in the first half, including Sendai, Ishigaki, Changzhou, and Cheongju, continuously expanding its Asian route network[71][73] Air Hong Kong Limited Air Hong Kong, primarily operating express cargo services for DHL Express, maintained stable performance in the first half of 2025, completing its fleet modernization to more fuel-efficient A330F freighters - Air Hong Kong's profit in the first half of 2025 was comparable to the same period in 2024, maintaining stable performance[84] - Completed its fleet modernization program, replacing A300-600F freighters with larger, more fuel-efficient A330F freighters[84] Major Subsidiaries Providing Services to Airlines As the aviation market recovered, subsidiaries providing services to airlines saw improved performance, including Cathay Pacific Catering, Cathay Pacific Cargo Terminal, and Hong Kong Airport Services - Cathay Pacific Catering: Produced 14.1 million inflight meals in the first half, a 27% year-on-year increase[82] - Cathay Pacific Cargo Terminal: Handled 795 thousand tonnes of cargo in the first half, an 8% year-on-year increase[85] - Hong Kong Airport Services: Handled 22.3% more flights (ramp operations) and 26.5% more flights (ground handling operations) year-on-year in the first half[87] Major Associate Companies The Group's share of results from major associate companies improved, with Air China and Air Cargo showing better financial performance due to enhanced revenue management and business expansion - The Group's share of Air China's results improved; as of June 30, 2025, the net book value of the Group's investment in Air China was HKD 9.936 billion[88] - The Group's share of Air Cargo's results improved; the Group's shareholding was diluted from 21.36% to 21.01% due to Air Cargo's exercise of its over-allotment option[88][89][93] Our Leadership Directions Cathay's corporate strategy is centered on three leadership directions: safety and operational excellence, transformation into a digital pioneer, and leadership in sustainability - Cathay's three leadership directions form a crucial part of its corporate strategy: safety and operational excellence, transformation into a digital pioneer, and leadership in sustainability[91] Safety and Operational Excellence Cathay prioritizes safety as the foundation of its success, maintaining a strong safety culture through a structured Safety Management System and leadership commitment - The company prioritizes safety, systematically ensuring the highest safety standards through a structured Safety Management System (SMS), and successfully passed the IATA Operational Safety Audit (IOSA) certification[92][93][94] - To prepare for the three-runway system, the company utilizes digital tools and an integrated operations center, improving flight punctuality by 4.7 percentage points compared to the same period last year[97] Digital Initiatives Cathay is committed to transforming into a digital pioneer, investing over HKD 3 billion annually in technology R&D and making significant progress in data analytics, AI, cybersecurity, and digital talent development - Annually invests over HKD 3 billion in technology R&D and digital innovation, having developed over 85 machine learning models to optimize operations[98][102] - Established a new subsidiary, "Cathay Tech," dedicated to commercializing internally developed digital products (e.g., "Electronic Flight Bag") and collaborating with Hong Kong Science Park to support startups[102] - Opened a new office in Qianhai, Shenzhen, expanding its digital and IT teams in the Greater Bay Area to capitalize on AI opportunities[100] Sustainability Cathay is committed to leadership in sustainability, pledging to achieve net-zero carbon emissions by 2050 and increase Sustainable Aviation Fuel (SAF) usage to 10% by 2030 - Key sustainability commitments include achieving net-zero carbon emissions by 2050, 10% SAF usage by 2030, and significantly reducing single-use plastics[102] - Signed an agreement with Sinopec to uplift domestically produced SAF for some flights at Hong Kong International Airport and a SAF supply agreement with SK Energy in Korea[106] - As of June 30, 2025, the Group employed over 32,200 staff globally, with approximately 27,300 based in Hong Kong[105] Financial Review This section provides a detailed analysis of the Group's revenue, operating expenses, operating results, fuel costs, and financial position for the first half of 2025 Revenue In the first half of 2025, Cathay Group's total revenue increased by 9.5% year-on-year to HKD 54.309 billion, primarily driven by a 12.7% growth in passenger service revenue Cathay Group Revenue Breakdown (Six Months Ended June 30) | Revenue Category | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Passenger Services | 37,212 | 33,004 | +12.7% | | Cargo Services | 12,761 | 12,610 | +1.2% | | Other Services and Recoveries | 4,336 | 3,990 | +8.7% | | Total Revenue | 54,309 | 49,604 | +9.5% | Operating Expenses The Group's total operating expenses increased by 10.4% year-on-year to HKD 49.860 billion in the first half, mainly due to higher staff, landing, parking, and en-route charges driven by increased capacity Cathay Group Operating Expense Breakdown (Six Months Ended June 30) | Expense Category | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Staff | 9,382 | 7,770 | +20.7% | | Landing, Parking and En-route Charges | 8,076 | 6,572 | +22.9% | | Fuel (including hedging) | 14,654 | 14,160 | +3.5% | | Total Operating Expenses | 49,860 | 45,152 | +10.4% | - The company's cost per Available Tonne Kilometer (including fuel) decreased by 4.1% from HKD 3.42 to HKD 3.28[116] - The company's cost per Available Tonne Kilometer (excluding fuel) decreased by 0.9% from HKD 2.32 to HKD 2.30[117] Operating Results Analysis In the first half of 2025, the Group's profit attributable to shareholders was HKD 3.651 billion, largely stable year-on-year, with a significant reduction in losses from associate companies contributing positively Operating Results Analysis (Six Months Ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Profit After Tax (excluding non-recurring items) from Company and Subsidiaries | 3,832 | 3,846 | -0.4% | | Share of Losses from Associate Companies | (181) | (342) | -47.1% | | Profit Attributable to Group Shareholders | 3,651 | 3,613 | +1.1% | - Profit growth primarily stemmed from increased passenger and cargo revenue (+HKD 4.430 billion), offset by rising staff, fuel, and landing/parking costs[119] Fuel Expenses and Hedging The Group's net fuel cost increased by 3.5% to HKD 14.654 billion in the first half, mainly due to a 19.0% increase in fuel consumption, partially offset by a 14.3% decrease in average aircraft fuel prices Group Fuel Cost Breakdown (Six Months Ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Total Fuel Cost | 14,436 | 14,221 | | Fuel Hedging Loss / (Profit) | 218 | (61) | | Net Fuel Cost | 14,654 | 14,160 | Financial Position As of June 30, 2025, the Group maintained a robust financial position with available unrestricted liquidity increasing to HKD 21.504 billion and net borrowings decreasing by 2.8% - Available unrestricted liquidity totaled HKD 21.504 billion, a 12.7% increase from the end of 2024[121] - Net borrowings decreased by 2.8% to HKD 56.342 billion[122] - Excluding leases without asset transfer elements, the net debt to equity ratio decreased from 0.90 times to 0.87 times, indicating a healthy financial leverage level[122] Review Report This section presents the conclusion of the independent review report on the Group's interim financial information Review Report Conclusion KPMG, the auditor, conducted a review of the Group's interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and found no material matters suggesting non-compliance with HKAS 34 - KPMG, the auditor, issued an unqualified review conclusion on the interim financial report[125][126] Condensed Financial Statements This section provides the condensed consolidated income statement, statement of financial position, cash flow statement, and notes to the condensed financial statements Consolidated Income Statement For the six months ended June 30, 2025, the Group reported total revenue of HKD 54.309 billion, operating profit of HKD 5.926 billion, and profit for the period attributable to ordinary equity holders of HKD 3.651 billion Consolidated Income Statement Summary (Six Months Ended June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Total Revenue | 54,309 | | Operating Profit | 5,926 | | Profit Before Tax | 4,321 | | Profit for the Period | 3,651 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets amounted to HKD 170.302 billion, with total liabilities of HKD 118.641 billion, resulting in net assets of HKD 51.661 billion Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Net Non-Current Assets | 86,091 | | Net Current Liabilities | (34,430) | | Net Assets | 51,661 | | Funds Attributable to Cathay Group Shareholders | 51,654 | Consolidated Cash Flow Statement For the six months ended June 30, 2025, the Group generated net cash inflow from operating activities of HKD 11.153 billion, with net cash outflows from investing and financing activities Consolidated Cash Flow Statement Summary (Six Months Ended June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Net Cash Inflow from Operating Activities | 11,153 | | Net Cash Outflow from Investing Activities | (4,267) | | Net Cash Outflow from Financing Activities | (9,130) | | Net Decrease in Cash and Cash Equivalents | (2,244) | Notes to the Condensed Financial Statements The notes provide detailed explanations of accounting policies, segment information, key income statement and balance sheet items, including capital commitments and contingent liabilities - Segment results show that Cathay Pacific recorded a pre-tax profit of HKD 5.842 billion, while HK Express recorded a loss of HKD 524 million[136] - The Board of Directors declared an interim dividend of 20 HK cents per share, totaling HKD 1.288 billion[161] - At period-end, total approved and contracted capital commitments amounted to HKD 97.545 billion, with the vast majority (HKD 96.58 billion) for aircraft and related equipment[164] - Subsequent to the reporting period, the company exercised purchase rights to acquire an additional 14 Boeing 777-9 aircraft[170] Information Required by Listing Rules This section details the company's corporate governance practices, directors' interests, and major shareholders as required by the Listing Rules Corporate Governance and Directors' Interests The company complied with all code provisions of the Corporate Governance Code during the reporting period, and no directors or chief executives held any share interests in the company or its associated corporations - The company complied with all code provisions contained in Part 2 of Appendix C1 to the Listing Rules, "Corporate Governance Code," during the reporting period[172] - As of June 30, 2025, none of the company's directors or chief executives held any share interests in the company or any of its associated corporations[177] Major Shareholders As of June 30, 2025, the company's major shareholders included Swire Pacific Limited and Air China Limited, which are deemed to jointly hold 74.96% of the share interests due to a shareholder agreement, with Qatar Airways Group holding 9.99% Major Shareholder Holdings (as of June 30, 2025) | Shareholder | Holding Percentage (%) | | :--- | :--- | | Air China (Attributable Interest) | 74.96 | | Swire Pacific (Attributable Interest) | 74.96 | | Qatar Airways Group | 9.99 | Disclaimer This section provides a disclaimer regarding forward-looking statements contained within the report Forward-Looking Statements This report contains forward-looking statements based on assumptions, estimates, and forecasts, which are subject to inherent risks and uncertainties, and actual results may differ materially due to various uncontrollable factors - The report contains forward-looking statements, and actual results may differ materially from expectations due to various risks and uncertainties[179]