Cathay Pacific warns against the drop in air prices and uncertain prospects for freight, shares drop by 10 % – 06/08/2025 at 08:43

((Translation automated by Reuters using automatic learning. Therefore, generative AI, please refer to the following warning: https://bit.ly/rtrsauto)))))

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Cathay has an increase of 1 % of its half -yearly profit

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The shares are on the way to knowing the highest drop as a percentage on a day since November 2008

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The carrier reports a drop in yields while market capacity increases

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Order of 14 Boeing 777-9 additional. Meanwhile, options for seven others

(Update of the course of action, adding an analyst’s comment to paragraph 7, details on yields in paragraphs 8-9) by Lisa Barrington and Donny Kwok

Cathay Pacific Airways

0293.HK warned on Wednesday against the drop in air prices. In addition, the difficulties of its cathay pacific warns against drop low -cost carrier and the uncertain conditions of the freight market, bringing down its shares by more than 10% after having posted a slight increase in its profit in the first half. For example,

The flagship carrier of Hong Kong also ordered 14 new Boeing Ba.N 777-9 as part of the renewal of its fleet. Moreover, which brings to 35 the total number of orders for this model, with options for seven others. Consequently,

Cathay announced a 1% increase in its profit in the first half to 3.65 billion HK dollars ($ 465 million) thanks to a sharp increase in the number of passengers. Similarly, lower fuel prices and a stable performance of freight.

However, passenger yield, an indicator of air prices, fell 12.3 % for its main brand and 21.6 % for its low -cost transporter HK Express during the period, Cathay and cathay pacific warns against drop its rivals that increased their capacity. Moreover,

“HK Express continues to face short -term challenges. For example, ” said Patrick Healy, president of Cathay, about the low -cost carrier, who recorded a loss of HK $ 524 million in the first half before net and tax financial charges. He added that Cathay had a long -term vision and that HK Express should find the way to profitability.

Cathay’s shares fell 10.7 % after the announcement of half -yearly results, reaching their lowest level since July 4, 2025. They are on the way to knowing the highest drop in percentage on a day since November 2008. while the Hang Seng Index reference index won 0.2 %.

“The results were in line with expectations. but the performance of the segment of low -cost carriers was not impressive,” said Steven Leung, sales director in Hong Kong for cathay pacific warns against drop the brokerage company Uob Kay Hian.

The yields of Asian air carriers are down compared to records reached after the pandemic. as carriers continue to increase their capacity, which intensifies competition. The resumption of air transport in the region was slower than in the rest of the world. because China and Hong Kong were slower to resume international flights after the COVVI-19.

Asian carrier Singapore Airlines

SIAL.SI said last week that its main brand yields decreased by 3.5 % in the quarter from April to June, while those of its low -priced scooter carrier were down 4.7 %.

Perspectives for freight

Based in the busiest frequency airport in the world. Cathay is one of the largest Asian freight carriers and has benefited in recent years from the increase in electronic commerce volumes from China.

Cathay underlined Wednesday the cathay pacific warns against drop uncertainty of the freight market caused by changes in American customs tariffs this year. in particular the cancellation of a customs duties for low value parcels from China and Hong Kong at the beginning of May.

However. the carrier said that his freight activity had shown resilience and that the capacity was redeployed in the markets that remained solid.

The semi -annual Cargo division revenue increased by 2.2 % to $ 11.1 billion HK, while yields fell 3.4 %.

Cathay’s order for an additional 14 aircraft 777-9 with ge.n engines exercised options obtained as part of an order of 2013 for 21 of these jets. and adds options to buy seven others in the future, said the carrier.

Cathay said the 14 jets had a catalog price of $ 8.1 billion, but that it had obtained significant discounts, as it was custom cathay pacific warns against drop for large airlines. The planes should be delivered by 2034.

The 777-9, the latest version of Boeing plane 777 has not yet been certified by the Federal Administration of American aviation. Kelly Ortberg. Director General of Boeing, said last month that the model was the subject of flight tests and that the aircraft manufacturer hoped to start deliveries next year.

Cathay said in March that she was waiting for her first delivery of 777-9 at the start of 2027.