Cathay Pacific Stock Soars to Decade High on Strong Profit Forecasts.

December 23, 2025 at 05:46 AM•3 min read

Cathay Pacific expects strong earnings, driving shares to a 10-year high, despite HK Express facing headwinds from weak Japan travel demand.

Key Points

1Cathay Pacific expects its first consecutive annual profit growth in a decade, surpassing the previous year's HK$9.88 billion net income.
2The strong second-half performance is driven by increased capacity, 87% passenger load factors, and resilient cargo demand.
3The positive results are partially offset by losses at budget unit HK Express due to weak Japan travel demand.
4The group's shares hit an over-7.5-year high following the surprise profit guidance announcement.

The Cathay Pacific Group anticipates a significant increase in its full-year financial results for 2025. This strong outlook is expected to surpass the performance from the previous year. The news caused the Cathay shares 10-year high on the Hong Kong Stock Exchange.

The projected upswing would mark the first consecutive annual profit growth in a decade for the Hong Kong flag carrier. The last time this milestone was achieved was between 2013 and 2015. This positive forecast signals a robust recovery in the commercial aviation news sector.

Drivers of Cathay Pacific Earnings Growth

Cathay Pacific credits a "strong" second half for its improved performance. This strength is due to several key operational factors. The airline saw increased capacity and solid passenger load factors.

Passenger load factor reached 87% in November 2025. This was the highest seat occupancy rate in two years.
Resilient cargo demand also boosted revenue for Cathay Cargo. Cargo tonnage increased by 10% in November 2025 year-on-year.
The group will also book a non-recurring gain of approximately HK$900 million. This windfall comes from a supplier settlement agreement.

Headwinds for HK Express Struggles

However, the overall positive result is partially offset by losses at the budget unit, HK Express. The low-cost carrier segment continues to face challenges.

These losses are mainly attributed to weak Japan travel demand. Demand was dampened by factors like earthquake rumors earlier in the year. HK Express reported a half-year loss of HK$524 million.

Despite this, the subsidiary is expanding its network. The airline is adding flights to destinations like Korea, Taiwan, and Southeast Asia. This strategy aims to diversify risk away from the Japan market.

Industry and Passenger Impact

This strong Cathay Pacific financial outlook is a positive sign for the Hong Kong International Airport hub. The airport is working to restore its global connectivity.

Robust demand is expected to continue through the holiday travel peaks. This includes the Christmas period and the Lunar New Year holiday. Passengers benefit from the increased capacity and new routes launched. Cathay Pacific has launched flights to 20 new destinations in 2025. This enhances the connectivity of the Hong Kong aviation hub. The group's performance highlights the uneven recovery across Asia's airline sector, where full-service carriers benefit from long-haul and cargo strength while regional budget units face yield pressure from competition and temporary demand shifts. Stakeholders in the global aviation news industry will continue to monitor the balance between strong mainline performance and regional market volatility.