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Confidential and ProprietaryInformation © Cathay Pacific Airways Limited and its subsidiaries 12 March 2025 Hosted by Ronald Lam, Chief Executive Officer Rebecca Sharpe, Chief Financial Officer Analyst Briefing 2024 Annual Results
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Confidential and ProprietaryInformation © Cathay Pacific Airways Limited and its subsidiaries Disclaimer This document has been prepared by Cathay Pacific Airways Limited (the “Company”, and together with its subsidiaries, the “Group”) solely for information purposes and certain information has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions presented herein or any verbal or written communication in connection with the contents contained herein. Neither the Company nor any of its affiliates, directors, officers, employees, agents, advisers or representatives shall have any responsibility or liability whatsoever, as a result of negligence, omission, error or otherwise, for any loss howsoever arising in relation to any information presented or contained in this document or otherwise arising in connection with this presentation. The information presented or contained in this document is subject to change without notice and shall only be considered current as of the date of this presentation. This document may contain certain forward-looking statements that reflect the Company’s beliefs, plans or expectations about the future or future events. These forward‐looking statements are based on a number of assumptions, current estimates and projections, and are therefore subject to inherent risks, uncertainties and other factors beyond the Company’s control. The actual results or outcomes of events may differ materially and/or adversely due to a number of factors, including changes in the economies and industries in which the Group operates (in particular in Hong Kong and the Chinese Mainland), macro-economic and geopolitical uncertainties, changes in the competitive environment, foreign exchange rates, interest rates and commodity prices, and the Group’s ability to identify and manage risks to which it is subject. Nothing contained in these forward-looking statements is, or shall be, relied upon as any assurance or representation as to the future or as a representation or warranty otherwise. Neither the Company nor its directors, officers, employees, agents, affiliates, advisers or representatives assume any responsibility to update these forward‐looking statements or to adapt them to future events or developments or to provide supplemental information in relation thereto or to correct any inaccuracies. This document is for information purposes only and does not constitute or form any part of, and should not be construed as, an invitation or offer to acquire, purchase or subscribe for securities nor is it calculated to invite any such offer or invitation, whether in Hong Kong, the United States, or elsewhere. This document does not constitute, and should not be construed as, any recommendation or form the basis for any investment decisions regarding any securities of the Company. Potential investors and shareholders of the Company should exercise caution when investing in or dealing in the securities of the Company. 2
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Agenda • Group strategy • 2024 Group results highlights • Business performance highlights • Outlook • Summary • Q&A 3
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Group strategy
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 5 Making positive progress in implementing our strategy
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Getting closer to our vision of becoming a world’s great service brand 6 World’s best premium airline World’s best air cargo carrier Asia’s best low cost carrier World’s best travel lifestyle business
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries The journey of moving Cathay towards new heights continues 7 Rebuild & Invest 2023 & 24 New Heights 2025 & Beyond
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 2023 & 2024
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 9 Happy Employees Happy Customers Profitable Business
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Employee sentiment has seen a major turnaround 10 2023 -15.1 2024 +41.6 Team Net Promoter Score
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Customer satisfaction is also on the rise 11 2023 +23.7 2024 +27.2 Customer Net Promoter Score
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Two consecutive years of solid financial performance 12 2023 HKD 9.8 bn 10.6% 2024 HKD 9.9 bn 11.6% Consolidated Profit Return on Capital Employed
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 2025 & Beyond
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Our positive progress has been recognised by industry awards 14 Top 5 world’s best premium airline Skytrax and Airline Ratings Top 5 world’s best low-cost carrier Airline Ratings Best Frequent-flyer Programme Business Traveller Asia Pacific Cargo Operator of the Year Air Transport World
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Expanding into new destinations for premium and low-cost travel 15 Cathay Pacific HK Express Hyderabad Dallas Urumqi Rome Munich Brussels Sendai Nha Trang Komatsu Ishigaki Miyako (Shimojishima)
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 16 Elevating premium travel experience and reducing detractors Cabin Conditions and Cleanliness Inflight Service Disruption Handling Inflight Dining
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 17 Bringing in new aircraft for travel and cargo 777-9 A350F A330-900 A320/1neo (2nd order)
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Introducing new cabin products for premium travel 18 777-300ER A330-300 777-9
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Launching new flagship lounges for premium travel 19 Beijing New York Hong Kong
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 20
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 2024 Group results highlights
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Financial highlights 2024 HK$94.5bn HK$104.4bn Revenue HK$20.0bnAvailable unrestricted liquidity HK$19.1bn HK$9.2bnCathay Group’s profit before associates and non-recurring items HK$8.8bn HK$9.8bnGroup attributable profit HK$9.9bn 0.69Gearing (excludes operating lease liabilities) 0.90 22 HK$0.43 HK$0.69 Dividend per ordinary share
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 9 .2 8.8 FY 2023 FY 2024 Cathay Group before Associates Non-recurring items Associates 9.2 Our second consecutive profitable year 23 HK$ million 2024 1H 2024 2H 2024 Full Year 2023 1H 2023 2H 2023 Full Year Cathay Group’sprofit before associates and non- recurring items 3,846 5,003 8,849 4,763 4,462 9,225 Non-recurring items 109 642 751 2,137 (11) 2,126 Cathay Group’sprofit before associates and after non-recurring items 3,955 5,645 9,600 6,900 4,451 11,351 Share of profits/(losses) of associates (342) 630 288 (2,632) 1,070 (1,562) Group attributable profit 3,613 6,275 9,888 4,268 5,521 9,789 Group profit/(loss) HK$ billion 9.8 9.9
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Full year 2024 group consolidated profit compared with 2023 Group attributable profit 24 9,789 9,888 0 10,000 20,000 30,000 2023 profit Non-recurring items Passenger revenue - volume Passenger revenue - yield Cargo revenue Other services and recoveries Net fuel cost Other operating costs & tax Associates 2024 profit HK$'m (1,375) 15,020 1,811 923 (3,271) (6,991) 1,850 (7,868)
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Non-recurring items recorded in 2024 Notes: 1) Gains on deemed partial disposals of HK$578 million (2023: HK$1,929 million) were recorded, reflecting the change in the Group’s shares of net assets in Air China and Air China Cargo immediately before and after the share issuances. 2) HK$106 million gain on convertible bonds repurchase, HK$48 million fair value gains on equity investments, HK$46 million impairment reversal for a previously impaired aircraft returning to service in the first half of 2024; offset by HK$27 million impairment of the investment in two associates. HK$ million 2024 2023 Adjusted group attributable results 9,137 7,663 Gains on deemed partial disposal of associates(1) 578 1,929 Net reversal of impairment and other gains or charges(2) 173 197 Group attributable results 9,888 9,789 25
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Fuel costs increased due to capacity growth, partially offset by lower fuel prices . Fuel costs 2024 2023 % Var Group gross fuel cost HK$ million 28,295 25,683 10.2% Group fuel hedging gains HK$ million (35) (694) -95.0% Group fuel cost HK$ million 28,260 24,989 13.1% Group into-plane fuel price ex hedging US$/bbl 103.4 114.1 -9.3% Group fuel consumption per million ATK bbl 1,290 1,244 3.7% Jet fuel price Fuel hedging at 31 Dec 2024 US$/BBL US$/BBL 26 60 80 0% 10% 20% 30% 40% 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 Hedge Cover % Average Strike Price (USD) • We continue to follow our fuel hedging policy to reduce exposure to fuel price risk by hedging a percentage of expected fuel consumption 60 80 100 120 140 Jan 23 Apr 23 Jul 23 Oct 23 Jan 24 Apr 24 Jul 24 Oct 24
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Strong operating cash performance enabled significant financing activities Cash inflow from operating activities HK$23.6bn Cash outflow from financing activities HK$19.8bn 27 20.0 19.1 24.7 3.6 (4.7) (8.8) 13.1 (11.6) (4.1) (5.5) (11.7) 4.1 10.0 20.0 30.0 40.0 50.0 1 Jan 2024 available unrestricted liquidity Cash generated from operations (ex. working capital) Net working capital movements Interest and tax Net investing activities New financing Loan and lease repayments Ordinary shares dividends paid Convertible bonds repurchased Warrants, preference shares redemption and dividends paid Net increase in committed undrawn facilities 31 Dec 2024 available unrestricted liquidity HK$bn
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Closing the financial rebuild chapter 28 To HKSAR Govt ▪ HK$2.4bn in preference share dividends in 2023/24 ▪ HK$1.5bn to repurchase the warrants in 2024 To Ordinary Shareholders ▪ HK$2.8bn in ordinary share dividends paid in respect of FY2023 ▪ First interim ordinary share dividend of HK$1.3bn paid in respect of FY2024 ▪ Second interim dividend of HK$0.49 per ordinary share announced in respect of FY2024 – HK$3.1bn Dec 2023 • Bought back first 50% of preference shares issued to HKSAR Govt - total amount HK$9.75bn May 2024 • Paid interim dividend of HK$0.43 per ordinary share for FY2023 - total amount HK$2.8bn Jul 2024 Sep 2024 Oct 2024 Jan 2025 • Bought back remaining 50% of preference shares issued to HKSAR Govt - total amount HK$9.75bn • Bought back the warrants from the HKSAR Govt - total amount HK$1.5bn • Paid interim dividend of HK$0.20 per ordinary share for FY2024 - total amount HK$1.3bn • Repurchased approx. 68% of the HK$6.74bn convertible bonds issued in Feb 2021 – total amount HK$5.5bn
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 42,458 49,879 59,300 58,581 62,429 54,698 53,979 45,064 41,443 47,097 0.89 0.90 0.97 0.92 0.99 0.75 0.75 0.71 0.69 0.90 0.0 0.3 0.6 0.9 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquidity and gearing back to historical levels Adjusted net debt * (HK$ million) Adjusted net debt / equity ratio^ (Times) *: Adjusted net debt excludes operating lease liabilities ^: Adjusted net debt/ equity ratio and is calculated in line with debt covenants, which is set at a limit of 2.0 times 29 20.3 20.1 18.9 15.1 14.7 19.2 19.1 18.2 15.5 10.5 - - 3.5 4.7 5.3 9.4 11.1 9.0 4.5 8.5 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquid funds Undrawn facilities Available unrestricted liquidity (HK$ million) 20.0bn 28.6bn 30.3bn 27.2bn 19.1bn19.8bn20.0bn 22.4bn 20.1bn20.3bn
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 57% 66% 43% 34% Dec 2023 Dec 2024 Floating Fixed Financing charges and interest rate profile 30 Interest rate profile: borrowings (after derivatives) Includes outstanding loans and borrowings, lease liabilities, and interest rate swaps which are hedge accounted for 2.7 2023 2024 Net financing charges (HK$bn) 3.1
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries • Our Lines of Business • Our Areas of Leadership Business performance highlights
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Premium Travel Six new destinations launched Barcelona, Cairns, Chennai, Colombo, Ningbo and Riyadh Aria Suite and new Premium Economy unveiled Offering passengers an elevated premium travel experience Four Airbus A321neo delivered Completing the first batch of 16 aircraft
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Significant capacity increase of over 30% • Continued to add more passenger flights and destinations to our network to cater for the strong demand for travel • Cathay Pacific carried more than two million passengers in a single month on five occasions – July, August, October to December 33 2024 2023 % Var Cathay Pacific passenger revenue HK$ million 62,595 55,951 +11.9% Available seat kilometres (ASK) Million 111,789 85,607 +30.6% Revenue passenger kilometres (RPK) Million 93,016 73,342 +26.8% Revenue passengers carried '000 22,827 17,985 +26.9% Passenger load factor % 83.2 85.7 -2.5%pt Passenger yield HK cents 67.3 76.3 -11.8% Passenger revenue per ASK HK cents 56.0 65.4 -14.4%
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Volume was robust as yields continued to normalise as expected 34 • 30.6% increase in capacity compared to 2023 Capacity (ASK’m) Load factor (% of ASK) • Load factor reduced from 2023 but remained strong Yield (HK¢ / RPK) • Regional yields have normalised • Long-haul yields continued to normalise 37,053 48,554 52,881 58,908 87.2% 84.5% 82.4% 83.9% 77.4 75.4 68.9 65.9 1H 2023 2H 2023 1H 2024 2H 2024
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Cargo eCommerce Strength in eCommerce demand throughout 2024 Cargo Solutions Driving competitive differentiation and yield premiums through special solutions Digitalisation & Sustainability Leadership Transforming our business through digital innovations and building a sustainable future
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Solid performance from elevated 2H cargo demand 36 • The growth in cargo capacity was driven primarily by the increase of belly capacity as we rebuilt the passenger network • Solid support from e-commerce business, especially from the Chinese Mainland on long-haul routes to the Americas & Europe • Recognised as Cargo Operator of the Year at the ATW Airline Industry Achievement Awards in Q1 2025, the second time in three years 2024 2023 % Var Cathay Cargo revenue HK$ million 24,000 22,162 +8.3% Available cargo tonne kilometres (AFTK) Million 14,193 13,069 +8.6% Cargo revenue tonne kilometres(RFTK) Million 8,503 8,099 +5.0% Cargo carried '000 tonnes 1,532 1,381 +10.9% Cargo load factor % 59.9 62.0 -2.1%pt Cargo yield HK$ 2.82 2.74 +2.9% Cargo revenue per AFTK HK$ 1.69 1.70 -0.6%
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Strong cargo demand drove yield higher 37 Capacity (AFTK’m) Load factor (% of AFTK) • 8.6% increase in full-year capacity compared to 2023 • Load factor remained solid Yield (HK$ / RFTK) • Elevated cargo demand in 2H 6,095 6,974 6,788 7,405 63.8% 60.4% 59.9% 60.0% 2.76 2.71 2.68 2.95 1H 2023 2H 2023 1H 2024 2H 2024
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Lifestyle Refreshed Cathay Holidays platform Tapping into over a million Expedia hotel properties New merchandise, channels and events Offering more non - air products and experiences for members to purchase and redeem Asia Miles 25 th anniversary Celebrated with extensive marketing and mileage campaigns
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Our Areas of Leadership Safety & operational excellence Digital Sustainability
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Capacity rebuild driving lower per -unit cost HK$ million 2024 2023 % Var Staff 13,406 11,839 +13.2% Inflight service and passenger expenses 4,122 2,986 +38.0% Landing, parking and route expenses 12,688 10,110 +25.5% Aircraft maintenance 7,367 6,270 +17.5% Depreciation, amortisation and rentals 11,141 11,006 +1.2% Other items (including commissions) 8,031 8,609 -6.7% Net finance charges 1,952 1,546 +26.3% T ax 1,166 827 +41.0% Underlying costs* (without fuel and before tax) 58,707 52,366 +12.1% Underlying costs* per ATK (without fuel and before tax) HK$2.36 HK$2.47 -4.5% 40 * Underlying costs exclude non-recurring items. Please refer to announcement for details.
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 41 Charting our course to net zero Aircraft Continuous fleet modernisation Operations Continuous improvements in fuel efficiency Sustainable aviation fuel Source and utilise SAF in our operations while supporting industry-wide development through collaboration and leadership New technology Support the development of transformative new technology to help reduce the environmental impact of aviation Carbon offsets and/ or carbon removal Compensate for residual emissions from our operations
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Low Cost Travel Carried the six - millionth passenger Added nine new destinations up to 29 destinations Eight Airbus A321neo delivered Bringing the total fleet size to 41 ASK growth by 46% N amed the world’s fastest - growing airline by OAG
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 43 Financial performance 2024 2023 % Var Total Revenue HK$ million 6,325 5,603 +12.9% (Loss)/profit after taxation HK$ million (400) 433 -192.4% Operating statistics 2024 2023 % Var Available seat kilometres (ASK) Million 13,764 9,432 +45.9% Revenue passenger kilometres (RPK) Million 11,481 8,112 +41.5% Passenger load factor % 83.4 86.0 -2.6%pt Passenger yield HK cents 52.2 67.6 -22.8% Competitive and operational challenges • Industry-wide Pratt & Whitney engine issues impacted aircraft utilisation and operational efficiency • Yield pressure caused by rapid normalisation of airfares in regional markets
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Other subsidiaries and major associates • Air Hong Kong recorded a profit at a similar level to 2023 44 • In 2024, CPA's interest in Air China was diluted from 16.26% to 15.09% as a result of Air China issuing 393 million new H shares on 7 February 2024 and 855 million new A shares on 10 December 2024. As a result, non-cash gains of HK$0.55 billion in total were recognised in 2024. • Our share of Air China’s results is based on its financial statements drawn up three months in arrears*. The period from 1 October 2023 to 30 September 2024 was included in our 2024 full year results. • On 30 December 2024, Air China Cargo was listed on Shenzhen Stock Exchange, as a result, CPA's interest in Air China Cargo was diluted from 23.99% to 21.36% as of 31 December 2024. • Airline services subsidiaries financial performance improved benefiting from the increase in capacity and traffic * Adjusted for any significant events or transactions between 1 October and 31 December 2024
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Outlook
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Travel outlook • The commissioning of the Three-Runway System marks a new phase of growth and development for the Hong Kong international aviation hub • Announced eleven destinations that are joining the Cathay Group’s network in 2025, with more still to come - will operate passenger flights to more than 100 destinations around the world within 2025 • Regional yields have normalised. Long-haul supply will increase in 2025 and yields are expected to continue to normalise. • Supply chain challenges continue to affect the entire aviation industry impacting many airlines, including the Cathay Group 46
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Cargo outlook 47 • With the US tariff increases and uncertainty around the de minimis exemption, we are closely monitoring any impacts on air cargo demand. We will make adjustments to both our network and cargo mix as and when required. • We remain confident in the strength of the Hong Kong air cargo hub with the recent opening of the Three-Runway System • Investing in future capacity – six firm orders for A350F freighters and the right to acquire an additional twenty • Cargo capacity will continue to grow through passenger belly growth before we receive the new A350F freighters
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Summary
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries 49 Completing our two - year rebuilding journey and investing for the future Flights • 100+ destinations within 2025 Investments • HK$100bn+ over the coming years Fleet • 100+ new-generation aircraft deliveries from 2024 Financials • Solid 2024 full year result • Payment of dividends of HK$0.49 per ordinary share in May 2025 • Robust level of liquidity
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Confidential and Proprietary Information © Cathay Pacific Airways Limited and its subsidiaries Q&A For more information, please visit our website www.cathaypacific.com For queries, please email us at ir@cathaypacific.com