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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 2021 HKDUSD
Revenue45,587M5,864.91M
Gross Profit836M107.55M
Operating income-3,174M-408.34M
Income before tax-4,072M-523.87M
Net income-5,527M-711.06M
EBITDA9,651M1,241.63M
Diluted EPS-0.95-0.12
Dividends Per Share00
Total Assets196,627M25,220.55M
Total liabilities124,904M16,020.93M
Total equity71,718M9,198.97M
Operating cash flow8,835M1,136.65M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 97,284M 111,060M 106,973M 46,934M 45,587M
Gross Profit 13,405M 11,865M 9,202M -5,555M 836M
Operating income 4,235M 4,583M 3,219M -9,333M -3,174M
Income before tax -580M 3,243M 502M -21,039M -4,072M
Net income -1,259M 2,345M 1,691M -21,648M -5,527M
EBITDA 13,589M 14,385M 18,232M 5,266M 9,651M
Diluted EPS -0.27 0.51 0.37 -4.24 -0.95
Dividends Per Share 0.04 0.26 0.15 0 0
Total Assets 188,378M 190,294M 214,516M 204,574M 196,627M
Total liabilities 127,106M 126,355M 151,740M 131,313M 124,904M
Total equity 61,101M 63,936M 62,773M 73,257M 71,718M
Operating cash flow 4,694M 14,992M 15,736M -13,616M 8,835M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 12,483.80M 14,170.25M 13,652.87M 6,051.31M 5,864.91M
Gross Profit 1,720.17M 1,513.86M 1,174.44M -716.22M 107.55M
Operating income 543.44M 584.74M 410.83M -1,203.32M -408.34M
Income before tax -74.42M 413.77M 64.06M -2,712.61M -523.87M
Net income -161.55M 299.20M 215.82M -2,791.13M -711.06M
EBITDA 1,743.78M 1,835.39M 2,326.93M 678.95M 1,241.63M
Diluted EPS -0.03 0.06 0.04 -0.54 -0.12
Dividends Per Share 0.00 0.03 0.02 0 0
Total Assets 24,097.57M 24,305.21M 27,530.99M 26,383.53M 25,220.55M
Total liabilities 16,259.57M 16,138.63M 19,474.31M 16,935.20M 16,020.93M
Total equity 7,816.12M 8,166.19M 8,056.28M 9,447.82M 9,198.97M
Operating cash flow 602.34M 1,912.84M 2,008.37M -1,755.54M 1,136.65M

Valuation Measures

Dec 2021
PER--
ROA-2.75%
ROE-7.62%
Operating margin-6.96%
Profit margin-12.12%

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: Rebecca Sharpe
  • Commercial Director: Lavinia Lau
  • Cargo Director: Tom William Owen

Shareholders

  • Swire Pacific Ltd. (45.0%)
  • Air China Ltd. (29.9%)
  • Government of Qatar (9.9%)
  • Capital Research & Management Co. (Global Investors) (0.9%)
  • Norges Bank Investment Management (0.5%)
  • Capital Research & Management Co. (World Investors) (0.5%)
  • Dimensional Fund Advisors LP (0.3%)
  • The Vanguard Group, Inc. (0.3%)
  • Russell Investments Ltd. (0.1%)
  • Oaktree Capital Management LP (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
  • China Airlines Ltd.
  • China Eastern Airlines Corporation Limited Class H
  • PT Garuda Indonesia (Persero) Tbk Class B
  • China Southern Airlines Company Limited Class H
  • Qantas Airways Limited
  • El Al Israel Airlines Ltd
  • Cebu Air Inc.
  • PAL Holdings, Inc.
  • JG Summit Holdings Inc.
  • Asia Aviation Public Co., Ltd.
Last Updated on 24 May, 2022

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