Core Viewpoint - Cathay Pacific reported a revenue of HKD 54.3 billion for the first half of the year, marking a 9.5% year-on-year increase, but profit growth faced pressure with a slight increase of 1.1% to HKD 3.65 billion [2] Group 1: Financial Performance - The passenger business revenue for Cathay Pacific was HKD 34.208 billion, up 14% year-on-year, although the yield decreased by 12.3% [2] - The total number of passengers carried was approximately 13.6 million, with a 30% year-on-year increase in passenger traffic measured in revenue passenger kilometers [2] - The company declared an interim dividend of HKD 0.20 per share [2] Group 2: Operational Insights - Cathay Pacific's low-cost subsidiary, HK Express, saw an expanded loss of HKD 520 million, significantly higher than the previous year's loss of HKD 60 million, despite a 33.5% increase in passenger volume [2] - The losses at HK Express were attributed to concerns over earthquakes affecting travel to Japan and the new routes still being in the cultivation phase [2][3] - The CEO noted that the revenue from Japanese routes constitutes about 50% of HK Express's income, but passenger numbers are recovering [3] Group 3: Future Outlook - Cathay Pacific anticipates a significant increase in passenger numbers by the first half of 2025, with a gradual profit recovery expected as market supply and demand balance out [2] - The cargo business showed stable performance with revenue of HKD 11.1 billion, a slight increase of 2.2%, although the load factor decreased to 58.6% [3] - The company is actively diversifying its market presence in Southeast Asia and exploring other cargo services beyond e-commerce [3] Group 4: Investment and Expansion - The group has committed to updating and expanding its fleet, including ordering over 100 new aircraft, with total investments exceeding HKD 100 billion [4] - Cathay Pacific exercised an option to purchase an additional 14 Boeing 777-9 aircraft, increasing its total order to 35 [4] Group 5: Market Reaction - Following the earnings report, Cathay Pacific's stock price fell by 9.66%, closing at HKD 10.85 per share [5]