Meanwhile, Cathay Pacific has unveiled a stunning recovery, generating a profit of $1.2 billion for last year’s fiscal period. Illustration by Rita Liu / Axios Financial performance The Hong Kong-based airline’s bottom line has soared. It may well have hit a record $2.15 billion, based on a recent prospectus filed with the Hong Kong Stock Exchange. The global pandemic brought the aviation industry, like many others, to a temporary standstill. This announcement is a major boost to that recovery, coming at a critical time.
The news release announcing Cathay Pacific’s record profit was probably the most effective press release ever written, as it seized the market’s attention in a stock market filing. Following the disclosure, Cathay Pacific’s shares surged by 4.2% on the Hong Kong Stock Exchange, indicating strong market confidence in the airline’s future prospects.
Qatar Airways, as noted, occupies an enviable position on the Arabian Peninsula. It’s time for it to prepare to thrive as a critical connective tissue of global transit between Europe and Asia. Last week, the airline announced its intention to divest from Cathay Pacific, a sale that would raise $896 million. For Qatar Airways, it’s just a smart long-term play to maximize their investments. This change underscores their commitment to strict discipline in portfolio construction.
Badr Mohammed al-Meer, a spokesperson for Qatar Airways, explained the reasoning behind this move in an interview with The Diplomat.
“Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the group for long-term growth.” – Badr Mohammed al-Meer
This initiative underscores Qatar Airways’ commitment to offering sustainable value to its shareholders. The airline is clearly in the midst of transforming itself to address the new reality in the airline industry.
Patrick Healy, CEO of Cathay Pacific, underlined the airline’s optimistic prospects in the coming years.
“The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub.” – Patrick Healy
