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 operating scheduled airline services. The firm is also involved in airline catering, aircraft handling, aircraft engineering, and cargo terminal operations. It operates through following business segments: HK Express, Air Hong Kong, Airline Services, and Associates. The HK Express segment offers passenger carrier scheduled services. The Air Hong Kong segment provides express cargo air transportation offering scheduled services. The Airline Services segment includes catering, cargo terminal operations, ground handling services, and commercial laundry operations. The Associates segment includes companies which hold a substantial long-term interest in equity share capital. 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 2022	HKD	USD
Revenue	51,036M	6,517.60M
Gross Profit	4,420M	564.46M
Operating income	244M	31.16M
Income before tax	637M	81.34M
Net income	-6,548M	-836.21M
EBITDA	12,672M	1,618.28M
Diluted EPS	-1.11	-0.14
Dividends Per Share	0	0
Total Assets	180,914M	23,179.39M
Total liabilities	117,556M	15,061.72M
Total equity	63,352M	8,116.90M
Operating cash flow	18,932M	2,417.72M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	111,060M	106,973M	46,934M	45,587M	51,036M
Gross Profit	11,865M	9,202M	-5,555M	836M	4,420M
Operating income	4,583M	3,219M	-9,333M	-3,174M	244M
Income before tax	3,243M	502M	-21,039M	-4,072M	637M
Net income	2,345M	1,691M	-21,648M	-5,527M	-6,548M
EBITDA	14,385M	18,232M	5,266M	9,651M	12,672M
Diluted EPS	0.51	0.37	-4.24	-0.95	-1.11
Dividends Per Share	0.26	0.15	0	0	0
Total Assets	190,294M	214,516M	204,574M	196,627M	180,914M
Total liabilities	126,355M	151,740M	131,313M	124,904M	117,556M
Total equity	63,936M	62,773M	73,257M	71,718M	63,352M
Operating cash flow	14,992M	15,736M	-13,616M	8,835M	18,932M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	14,170.25M	13,652.87M	6,051.31M	5,864.91M	6,517.60M
Gross Profit	1,513.86M	1,174.44M	-716.22M	107.55M	564.46M
Operating income	584.74M	410.83M	-1,203.32M	-408.34M	31.16M
Income before tax	413.77M	64.06M	-2,712.61M	-523.87M	81.34M
Net income	299.20M	215.82M	-2,791.13M	-711.06M	-836.21M
EBITDA	1,835.39M	2,326.93M	678.95M	1,241.63M	1,618.28M
Diluted EPS	0.06	0.04	-0.54	-0.12	-0.14
Dividends Per Share	0.03	0.02	0	0	0
Total Assets	24,305.21M	27,530.99M	26,383.53M	25,220.55M	23,179.39M
Total liabilities	16,138.63M	19,474.31M	16,935.20M	16,020.93M	15,061.72M
Total equity	8,166.19M	8,056.28M	9,447.82M	9,198.97M	8,116.90M
Operating cash flow	1,912.84M	2,008.37M	-1,755.54M	1,136.65M	2,417.72M

Valuation Measures

Dec 2022
PER	--
ROA	-3.46%
ROE	-9.69%
Operating margin	0.47%
Profit margin	-12.83%

Key executives

Chief Executive Officer & Executive Director: Siu Por Lam
COO, Director & Chief Service Delivery Officer: Alexander James John McGowan
Chief Financial Officer & Executive Director: Rebecca Jane Sharpe
Director-Digital & Information Technology: Lawrence Fong
Director-Flight Operations: Chris Kempis

Shareholders

Swire Pacific Ltd. (45.0%)
Air China Ltd. (29.9%)
Government of Qatar (9.9%)
Hermes Investment Management Ltd. (0.5%)
Norges Bank Investment Management (0.3%)
The Vanguard Group, Inc. (0.3%)
Schroder Investment Management (Hong Kong) Ltd. (0.3%)
Dimensional Fund Advisors LP (0.3%)
US Global Investors, Inc. (Asset Management) (0.1%)
Union Investment Privatfonds GmbH (0.1%)

Contact Details

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

Related Companies

Cathay Pacific Airways Ltd. (New Zealand)
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.
PT Garuda Indonesia (Persero) Tbk Class B
China Southern Airlines Company Limited Class H
Qantas Airways Limited
Cebu Air Inc.
PAL Holdings, Inc.
JG Summit Holdings Inc.
Asia Aviation Public Co., Ltd.

Last Updated on 1 Jun, 2023