Cathay Pacific (00293) recently announced its 2024 results, with total revenue increasing by 10.5% to HK$104.371 billion, and a net profit of HK$9.888 billion, up 1% year-on-year. The company declared a second interim dividend of HK$0.49, a 14% increase compared to the previous year, bringing the total annual dividend to HK$0.69, a significant 60.5% increase, with a latest dividend yield of 6.18%.
CEO Ronald Lam stated that the group's rebuilding journey has successfully concluded, with combined flight volumes with HK Express reaching pre-pandemic levels starting January this year. Last year, Cathay hired and trained a record 7,000 new employees, bringing the total workforce to over 30,000. The company aims to add another 4,000 employees this year, reaching a total of 34,000.
Additionally, Cathay's wholly-owned subsidiary, HK Express, reported a 9% increase in passenger revenue to HK$5.994 billion for 2024. However, HK Express transitioned from profit to a loss, reporting an annual loss of HK$400 million, compared to a profit of HK$433 million in 2023, with the annual performance worsening from a loss of HK$73 million in the first half.
Cathay noted that an average of five Airbus A320neo aircraft were grounded due to issues with Pratt & Whitney engines, impacting aircraft utilization and operational efficiency. Furthermore, the rapid normalization of short-haul market ticket prices has increased revenue pressure.
Passenger yield, which reflects ticket price levels, declined, with Cathay's passenger yield at HK$0.673, down 11.85% year-on-year, while HK Express's yield dropped by 22.8% to HK$0.522.
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