Cathay Pacific posts best first-half profit since 2010 despite fuel cost surge

Cathay Pacific reported net profit of HK$6.24bn for H1 2026, up 71pc year-on-year
Revenue rose 25.3pc to HK$68bn with a profit margin of 9.2pc
Fuel costs increased 59pc year-on-year with jet fuel prices forecast at $152 per barrel
The airline aims to grow passenger capacity by 10pc in 2026
Singapore Airlines posted its first quarterly loss since 2022 due to high fuel costs

Cathay Pacific Airways has today reported its best first-half profit since 2010, staying cautiously optimistic on the outlook for the rest of the year despite warning that higher jet fuel prices due to the Middle East conflict were likely to persist. The Hong Kong flagship carrier said its net profit rose 71pc to HK$6.24bn ($795.59m) for the six months ended June 30 on the back of strong passenger and cargo demand. The profit was the second-highest in its history for the period despite a 59pc year-on-year increase in fuel costs and was near the midpoint of a forecast provided last month. “Looking ahead, summer travel demand going into the third quarter is looking strong,” Cathay Chairman Guy Bradley said in a statement. “We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors.”

The airline remained on track to grow its passenger capacity by about 10pc this year, he added. Cathay’s revenue climbed 25.3pc to HK$68bn in the first half, while its profit margin grew to 9.2pc from 6.7pc. The net profit included a one-time gain of about HK$1bn from the partial dilution of its stake in Air China. Cathay heads into the second half with some of the factors that lifted first-half earnings beginning to fade. The Hong Kong carrier had benefited as passengers rerouted away from Gulf hubs following disruptions in the Middle East, but Gulf airlines are restoring flights and competing more aggressively for Asia-Europe traffic, while elevated fuel prices are expected to keep pressure on costs.

Jet fuel prices are forecast to average $152 per barrel this year, nearly 70pc above 2025 levels, according to the International Air Transport Association. Cathay said its jet fuel costs had almost doubled in the second quarter relative to the first quarter, though the increase was partially offset by fuel surcharges and a HK$878m first-half gain from its fuel hedging programme. “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,” Bradley said. Rival Singapore Airlines posted its first quarterly loss since 2022 in the three months ended June 30 despite record revenue, weighed down by high fuel prices and losses from Air India.

Cathay Pacific shared “we remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors 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”