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Cathay Pacific Airways Ltd.

Company Background

Cathay Pacific Airways is Hong Kong's flag carrier, offering passenger and cargo services to around 200 cities in Asia, Europe, North America, Africa and Australia. It has a workforce of around 23,000.

The company was established in 1946 by Roy Farrell, an American, and Sydney de Kantzow, an Australian. Early on, it offered flights to Shanghai, Bangkok, Manila and Singapore.

Swire Pacific, a conglomerate engaged in the property development, beverage, marine services and trading businesses, has owned 45% of Cathay Pacific since 1948. Through the years, Swire has overseen the airline's expansion. In 2006, Cathay Pacific acquired Dragonair, a Hong Kong-based carrier that mainly flies within the Asia-Pacific region. Around the same time, it signed a strategic partnership with national flag carrier Air China.

Air China owns 29.99% of Cathay Pacific.

John Slosar, who also leads Swire, became chairman of Cathay Pacific in 2014. Amid the rise of low-cost carriers, he plans to boost the airline's competitiveness by capitalizing on a new runway at Hong Kong International Airport. The third runway, scheduled for completion in 2023, should allow the airport to handle 102 flights per hour, up from 68, and serve an additional 30 million passengers annually.

Business Summary

Cathay Pacific Airways Ltd. engages in airline operations. It operates through the Airline Business and Non-Airline Business segments. The Airline Business segment comprises of passenger and cargo operations. The Non-Airline Business segment includes airline catering, ground handling, and aircraft ramp handling services. The company was founded by Roy C. Farrell and Sydney H. de Kantzow on September 24, 1946 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019 HKDUSD
Revenue106,973M13,652.87M
Gross Profit9,202M1,174.44M
Operating income3,219M410.83M
Income before tax502M64.06M
Net income1,691M215.82M
EBITDA18,232M2,326.93M
Diluted EPS0.370.04
Dividends Per Share0.150.02
Total Assets214,516M27,530.99M
Total liabilities151,740M19,474.31M
Total equity62,773M8,056.28M
Operating cash flow15,736M2,008.37M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 102,342M 92,751M 97,284M 111,060M 106,973M
Gross Profit 19,789M 15,659M 13,405M 11,865M 9,202M
Operating income 14,983M 8,070M 4,235M 4,583M 3,219M
Income before tax 5,500M -1,826M -580M 3,243M 502M
Net income 6,000M -575M -1,259M 2,345M 1,691M
EBITDA 23,842M 16,620M 13,589M 14,385M 18,232M
Diluted EPS 1.32 -0.12 -0.27 0.51 0.37
Dividends Per Share 0.46 0.04 0.04 0.26 0.15
Total Assets 172,827M 177,421M 188,378M 190,294M 214,516M
Total liabilities 124,760M 121,895M 127,106M 126,355M 151,740M
Total equity 47,927M 55,365M 61,101M 63,936M 62,773M
Operating cash flow 16,275M 6,530M 4,694M 14,992M 15,736M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 13,201.03M 11,948.66M 12,483.80M 14,170.25M 13,652.87M
Gross Profit 2,552.57M 2,017.27M 1,720.17M 1,513.86M 1,174.44M
Operating income 1,932.64M 1,039.61M 543.44M 584.74M 410.83M
Income before tax 709.44M -235.23M -74.42M 413.77M 64.06M
Net income 773.93M -74.07M -161.55M 299.20M 215.82M
EBITDA 3,075.36M 2,141.07M 1,743.78M 1,835.39M 2,326.93M
Diluted EPS 0.17 -0.01 -0.03 0.06 0.04
Dividends Per Share 0.05 0.00 0.00 0.03 0.02
Total Assets 22,299.82M 22,883.73M 24,097.57M 24,305.21M 27,530.99M
Total liabilities 16,097.75M 15,721.99M 16,259.57M 16,138.63M 19,474.31M
Total equity 6,184.00M 7,140.96M 7,816.12M 8,166.19M 8,056.28M
Operating cash flow 2,099.30M 841.22M 602.34M 1,912.84M 2,008.37M

Valuation Measures

Dec 2019
PER26.80
ROA0.83%
ROE2.66%
Operating margin3.00%
Profit margin1.58%

Key executives

  • Chief Executive Officer & Executive Director: Kin Wing Tang
  • COO, Director & Chief Service Delivery Officer: Gregory Thomas Forrest Hughes
  • Chief Financial Officer & Executive Director: Martin James Murray
  • Director-Service Delivery: Ying Wah Yau
  • Commercial Director: Lavinia Lau

Shareholders

  • Swire Pacific Ltd. (31.5%)
  • Air China Ltd. (29.9%)
  • Government of Qatar (7.0%)
  • Capital Research & Management Co. (Global Investors) (0.8%)
  • The Vanguard Group, Inc. (0.4%)
  • Dimensional Fund Advisors LP (0.2%)
  • Norges Bank Investment Management (0.2%)
  • PineBridge Investments Asia Ltd. (0.0%)
  • Charles Schwab Investment Management, Inc. (0.0%)
  • JPMorgan Investment Management, Inc. (0.0%)

Contact Details

  • Website:http://cathaypacific.com
  • Address: Cathay Pacific City, 8 Scenic Road, Hong Kong International Airport, Hong Kong, Hong Kong
  • Phone: +852.2747.3333

Related Companies

  • New Zealand Basing Ltd.
  • Cathay Pacific Airways Ltd. (Spain)
  • Cathay Pacific MTN Financing (HK) Ltd.
  • Troon Ltd. (Isle of Man)
  • Cathay Pacific Fund Management Ltd.
  • Cathay Pacific China Cargo Holdings Co. Ltd.
  • Global Logistics System (HK) Co. Ltd.
  • Connaught Network Services Pvt Ltd.
  • Cathay Pacific Services Ltd.
  • Cathay Pacific Leasing Ltd.
  • Cathay Pacific Airways Ltd. (Australia)
  • Cathay Pacific MTN Financing Ltd.
  • Asia Miles Ltd.
  • Hong Kong Express Airways Ltd.
  • CPA Finance Cayman
  • Cathay Pacific Finance Ltd.
  • Cathay Pacific Aircraft Services Ltd.
  • Hong Kong Dragon Airlines Ltd.
  • AHK Air Hong Kong Ltd.

Competitors

  • Air China Limited Class H
  • Qantas Airways Limited
  • China Airlines Ltd.
  • China Eastern Airlines Corporation Limited Class H
  • El Al Israel Airlines Ltd
  • China Southern Airlines Company Limited Class H
  • PT Garuda Indonesia (Persero) Tbk Class B
  • Cebu Air Inc.
  • PAL Holdings, Inc.
  • Knafaim Holdings Ltd.
  • Air Canada
  • International Consolidated Airlines Group SA
  • JG Summit Holdings Inc.
  • Asia Aviation Public Co., Ltd.
  • Nippon Yusen Kabushiki Kaisha
Last Updated on 25 Sep, 2020

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