In a remarkable turnaround, Cathay Pacific has reported a significant boost in both revenue and passenger numbers for the year 2024. The airline carried an impressive 22.8 million passengers, marking a substantial increase from the previous year. Despite challenges such as declining yields due to normalized ticket prices, the company managed to reward shareholders with a generous dividend hike. Total revenue surged by over 10%, reaching $104.37 billion, while net profit stood at $9.89 billion. This performance reflects the airline's strategic post-pandemic expansion and its ability to adapt to industry trends.

Passenger Growth Drives Revenue Increase

The airline's robust passenger growth was a key driver behind its financial success. A notable rise in the number of travelers using Cathay Pacific services contributed significantly to the overall revenue. The airline saw a 26.9% surge in passenger traffic, which translated into a substantial increase in passenger revenue. Although yields dipped slightly, the airline's ability to attract more travelers ensured that the overall financial impact remained positive.

Detailed analysis reveals that the airline transported approximately 22.8 million passengers in 2024, reflecting a year-over-year increase of 26.9%. This influx of passengers resulted in a passenger revenue of $62.6 billion, up 11.9% compared to the previous year. The slight decline in yields by 11.8% can be attributed to the normalization of ticket prices following increased flight supply. Nonetheless, the airline maintained strong financial health, rewarding shareholders with a 60.5% increase in dividends, amounting to $0.69 per share. Earnings per share also saw improvements, with basic EPS rising to 149.2 cents and diluted EPS at 133.2 cents, representing increases of 6.0% and 5.9%, respectively.

Strategic Expansion and Financial Performance

Cathay Pacific's strategic post-pandemic expansion efforts have paid off, despite some challenges. The airline continued to invest in its operations, leading to an increase in net borrowings. However, this investment was well-aligned with the company's long-term growth objectives. The slight drop in passenger load factor mirrored broader industry trends but did not hinder the overall positive financial outcomes.

The airline's total revenue climbed to $104.37 billion, marking a 10.5% increase from the previous year. Net profit reached $9.89 billion, a modest 1.0% rise. To support its expansion plans, Cathay Pacific increased its net borrowings by 9.8%, totaling $57.94 billion. The passenger load factor decreased slightly to 83.2%, down 2.5 percentage points, aligning with the trend of fare adjustments as airlines ramped up operations post-pandemic. Despite these minor setbacks, Cathay Pacific's financial performance remained robust, demonstrating the company's resilience and adaptability in a competitive market.