(March 12): Cathay Pacific Airways Ltd’s full-year profit inched higher, defying expectations for a drop, as the carrier benefited from continued strong demand for air travel and robust cargo volumes.

Net income rose 1% in the 12 months ended Dec 31 to HK$9.9 billion (RM5.65 billion) year-on-year, the airline said Wednesday. That was better than analyst estimates of HK$8.1 billion. Sales for the full year were HK$104.4 billion, compared with estimates of HK$103.8 billion.

Hong Kong’s flag carrier enjoyed a strong end to 2024 — profit in the second half rose by around HK$750 million versus the previous corresponding period — after first-half net income fell 15% to HK$3.6 billion. The second half was buoyed by good cargo revenues, a narrower loss at associate Air China Ltd and lower jet fuel prices.

However, Cathay faces an uncertain outlook for its cargo unit, which typically contributes about one-quarter of revenue, amid a US crackdown on purchases from Chinese online retailers and broader trade dislocations from President Donald Trump’s tariff regime.

“Of course, 2025 and beyond will not be without headwinds,” CEO Ronald Lam said. “Trade conflicts, as they develop, could pose challenges to Cathay cargo.” Lam added that supply chain challenges continue to rile the entire aviation industry, “impacting many airlines.”

Cathay and budget unit HK Express’s monthly passenger volumes have now virtually recovered to pre-Covid-19 levels. The group is also closing in on a target to expand to 100 destinations this year. Among the routes relaunched or to be started are Brussels, Munich, Rome, Dallas and Urumqi in China.

Shares in Cathay were up 0.5% in Wednesday trade, bringing gains this year to around 16%, making the carrier the second-best performer in the Bloomberg World Airlines Index.

Uploaded by Arion Yeow