Cathay Pacific Airways recorded its highest first-half net profit since 2010, reporting HK$6.24 billion (about US$795.59 million) for the six months ended June 30, 2026, a 71% increase from the prior year [1, 2, 3, 4]. The airline's revenue rose 25.3% to HK$68 billion, and its profit margin improved to 9.2% from 6.7% in the previous period [2, 3, 4].
Strong passenger and cargo demand contributed significantly to the profit growth. Additionally, the airline saw a one-time gain from its stake in Air China, which helped offset the impact of sharply higher jet fuel prices triggered by the ongoing conflict in Iran [1, 2, 3, 4]. Fuel costs nearly doubled in the second quarter compared to the first quarter but were partially cushioned by fuel surcharges applied to ticket prices [2, 3].
The International Air Transport Association forecasts jet fuel prices to average US$152 per barrel in 2026, nearly 70% higher than 2025 levels, placing continued pressure on operating costs [2, 3]. Cathay Pacific benefited temporarily from Middle East disruptions as travelers rerouted flights away from Gulf hub airports, but these advantages have diminished recently as Gulf carriers resumed flights and engaged in price competition [2, 3].
On August 5, 2026, Cathay Pacific’s stock price rose 1.39% to HK$14.60 following the profit announcement [4].
Cathay chairman Guy Bradley noted that "Looking ahead, summer travel demand going into the third quarter is looking strong. We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors" [2]. He also warned, "We expect the impact of elevated fuel prices will continue for the rest of the year and we remain alert to the changing geopolitical and market situation" [3].
