Cathay Pacific, which is celebrating its 80th anniversary in 2026, posted impressive, double-digit revenue and – almost – profit growth in 2025, as it continued to rebuild its operations following several tumultuous years before and during the pandemic.

Double-digit revenue growth

In 2025, Cathay Pacific’s revenue improved by 11.9% year-on-year (YoY), with the group ending the year with revenues of HK$116.7 billion ($14.9 billion). Its profit improved by 9.5% compared to 2024, yet the profit margin was 0.2% percentage points lower.

Its operating costs were HK$102.6 billion ($13.1 billion), resulting in an operating profit of HK$14.4 billion ($1.8 billion), 

Patrick Healy, the Chair of Cathay Pacific, said that 2025 was the company’s “third consecutive year of solid financial performance,” an achievement that reflected the commitment of its employees.

The year’s results provide a “solid foundation from which we can continue to sustainably grow our business for our customers, our people, our shareholders, and Hong Kong.”

“This year marks 80 years since Cathay’s founding in 1946. We are immensely proud to have grown side by side with our home hub, Hong Kong, over the past eight decades. As we celebrate “80 Years Together”, we look forward to continuing to connect Hong Kong and the Chinese Mainland with the world.”

Capacity growth puts a dent in unit revenues

In 2025, Cathay Pacific, the airline, grew its capacity, measured in available seat kilometers (ASKs), by 25.8%. That resulted in unit revenue, or passenger revenue per ASK, falling by 8%. Yields were also 10.3% lower compared to 2024, while load factors improved by 2 percentage points.

The Americas region saw the biggest decline in unit revenue, with 16.9% lower yield than in 2024 on 36.1% capacity growth. Europe, on the other hand, saw yields remain almost flat (-0.6% YoY) on 26.6% capacity growth. 

HK Express, the group’s low-cost carrier, was in the same boat. Its ASKs rose by an impressive 31.9% YoY. Unit revenues and yield contracted by 19.1% and 15.3%, as did the average load factor, which was 3.8 percentage points lower YoY.

"Overall costs for Cathay before subsidiaries and associates increased compared with 2024 due to the increase in capacity,” the group said, adding that non-fuel expenses increased by 13.8% YoY. Fuel costs grew by 11.2%.

HK Express, meanwhile, was loss-making in 2025. The low-cost carrier’s operating loss was HK$996 million ($127.2 million) in 2025, as it welcomed 7.9 million passengers, 30% more than in 2024.

New products and focus on a path to sustained profitability

Ronald Lam, the Chief Executive Officer (CEO) of Cathay Pacific, said that for Cathay Pacific, the focus will be on adding frequencies on current routes and adding new destinations in 2026, including the relaunch of its services to Seattle-Tacoma International Airport (SEA).

Cathay Pacific will introduce a new business class product, called Aria Studio, and new economy class seats on its regional Airbus A330s at the end of 2026, which will be followed by the new first class cabin on its Boeing 777-9s in 2027.

The group will take a “long-term view and a path to sustained profitability can be expected based on the low-cost carrier business model” when it comes to HK Express. Lam added that the company has “been taking measures to elevate the resilience of the business and [is] starting to see some positive impact, with the first two months of 2026 getting off to an encouraging start.”

Lam concluded by saying that in 2026, Cathay Pacific will take delivery of eight new narrowbody aircraft, expecting to grow its ASKs by around 10% during the year.