Earnings release
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CATHAY Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . CATHAY PACIFIC AIRWAYS LIMITED ( Incorporated in Hong Kong with limited liability ) ( Stock Code : 293 ) Announcement 2026 Interim Results
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2 Interim Results 2026 Cathay Pacific Airways Limited (the “Company”) and its subsidiaries (“Cathay”, the “Cathay Group” or the “Group”) offer products and services across four principal lines of business – Cathay Pacific, Cathay Cargo, Cathay Lifestyle and Hong Kong Express Airways Limited (“HK Express”). Financial and Operational Highlights Group Financial Statistics 2026 2025 Six months ended 30th June Change Results Revenue HK$ million 68,061 54,309 +25.3% Profit attributable to the shareholders of the Cathay Group HK$ million 6,243 3,651 +71.0% Earnings per ordinary share - Basic HK cents 99.5 56.7 +75.5% - Diluted HK cents 99.5 54.8 +81.6% Dividend per ordinary share HK cents 26 20 +30.0% Profit margin % 9.2 6.7 +2.5%pt 30th June 31st December Financial position Funds attributable to the shareholders of the Cathay Group HK$ million 58,018 60,110 -3.5% Net borrowings(a) HK$ million 47,267 46,812 +1.0% Available unrestricted liquidity(b) HK$ million 23,575 24,957 -5.5% Ordinary shareholders’ funds per ordinary share HK$ 9.5 8.9 +6.7% Net debt/equity ratio(a) Times 0.81 0.78 +0.03 times Operating Statistics 2026 2025 Six months ended 30th June Change The Company Available tonne kilometres (ATK) Million 14,739 13,699 +7.6% Revenue tonne kilometres (RTK) Million 10,741 9,701 +10.7% Cost per ATK (with fuel)(c) HK$ 3.87 3.28 +18.0% Fuel consumption per million ATK Barrels 1,345 1,321 +1.8% Fuel consumption per million RTK Barrels 1,845 1,864 -1.0% Cost per ATK (without fuel)(c) HK$ 2.42 2.30 +5.2% ATK per HK$’000 employee cost Unit 1,806 1,852 -2.5% ATK per employee ‘000 583 552 +5.6% Aircraft utilisation Hours per day 11.9 10.8 +10.2% Average age of fleet Years 13.3 12.3 +1.0year Cathay Pacific Available seat kilometres (ASK) Million 74,662 66,792 +11.8% Revenue passenger kilometres (RPK) Million 65,334 56,651 +15.3% Passenger revenue per ASK HK cents 57.9 51.2 +13.1% Revenue passengers carried ‘000 16,006 13,627 +17.5% Passenger load factor % 87.5 84.8 +2.7%pt Passenger yield HK cents 66.1 60.4 +9.4% On-time performance (passenger) % 75.1 79.9 -4.8%pt Cathay Cargo Available freight tonne kilometres (AFTK) Million 7,626 7,336 +4.0% Revenue freight tonne kilometres (RFTK) Million 4,514 4,302 +4.9% Cargo revenue per AFTK HK$ 1.81 1.52 +19.1% Cargo carried ‘000 tonnes 869 801 +8.5% Cargo load factor % 59.2 58.6 +0.6%pt Cargo yield HK$ 3.06 2.59 +18.1% HK Express Available seat kilometres (ASK) Million 9,426 8,810 +7.0% Revenue passenger kilometres (RPK) Million 7,623 6,947 +9.7% Passenger revenue per ASK HK cents 43.9 34.1 +28.7% Revenue passengers carried ‘000 4,163 3,791 +9.8% Passenger load factor % 80.9 78.9 +2.0%pt Passenger yield HK cents 54.3 43.2 +25.7% On-time performance % 85.4 87.1 -1.7%pt Average age of fleet Years 7.7 7.6 +0.1year (a) Adjusted net borrowings and the net debt/equity ratio excluding leases without asset transfer components are HK$ 37,497 million (202 5: HK$36,352 million) and 0.65 (2025: 0.60) respectively. (b) Available unrestricted liquidity includes cash pooling arrangements where overdraft balances are netted off. (c) Cost per ATK represents total operating costs divided by ATK for the period.
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Interim Results 2026 3 Fleet Profile(a) Aircraft type Number at 30th June 2026 Average age Orders(c)(i) Expiry of leases without asset transfer(b) Leased(b) Owned With asset transfer Without asset transfer Total ‘26 ‘27 ‘28 and beyond Total ‘26 ‘27 ‘28 ‘29 ‘30 ‘31 and beyond The Company (Passenger aircraft): A321neo 5 6 5 16 3.6 3(d) 2(d) 3(d) 8 5 A330-300 42 1 43 17.8 1 A330-900 30 30 A350-900 20 8 2 30 8.2 2 A350-1000 11 7 18 6.6 777-300 17 17 24.7 777-300ER 26 9 35 13.7 9 777-9 6 29 35 The Company (Freighter): A350F 8(e) 8 747-400ERF 6 6 17.5 747-8F 14 14 13.4 Total of the Company 141 21 17 179 13.3 3 8 70 81 - - 3 - - 14 HK Express: A320-200 3(f) 3 6 18.3 2 1 A320-200neo 10 10 7.3 2(d)(g) 2(d)(g) 4(d)(g) 8 2 2 1 5 A321-200 2(f) 8 10 11.3 8 A321-200neo 7(f) 9(f) 16 1.8 3(d)(g) 11(d)(g) 2(d)(g) 16 Total 12 9 21 42 7.7 5 13 6 24 - - 4 3 1 13 Air Hong Kong(h): A330-243F 4 4 12.4 2 2 A330-300P2F 10 10 14.7 3 4 3 Total - - 14 14 14.1 - - - - 5 - 4 3 2 - Grand total 153 30 52 235 12.3 8 21 76 105 5 - 11 6 3 27 (a) The table does not reflect aircraft movements after 30th June 2026. (b) Leases without asset transfer components are accounted for in a similar manner to leases with asset transfer components under accounting standards. The majority of leases without asset transfer components in the above table are within the scope of HKFRS 16 Leases (“HKFRS 16”). (c) The Group believes that based on its available unrestricted liquidity as at 30th June 2026, as well as its ready access to both loan and debt capital markets, it will have sufficient financing capacity to fund this material investment in the fleet. (d) Final number subject to reallocation between the Company and HK Express. (e) The Group exercised purchase right to acquire two A350F aircraft in May 2026. (f) The aircraft are sub-leased to HK Express. (g) Final split between Airbus A320-200neo and A321-200neo is subject to adjustment in accordance with future operational requirements. (h) The contractual arrangements relating to the freighters operated by Air Hong Kong do not constitute leases in accordance with HKFRS 16. (i) The Group also has the right to acquire 87 additional aircraft.
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4 Interim Results 2026 Chair’s Statement I am pleased to be writing my first message to you as Chair of the Cathay Group, made all the more meaningful as we celebrate our 80th anniversary this year. The Cathay Group achieved a strong financial performance in the first half of 2026. Our result was positively impacted by ongoing underlying demand for Cathay Pacific and Cathay Cargo, improved performance from HK Express, and stronger contributions from associates. As a Group, we carried more passengers and cargo, and operated more flights compared with the first half of 2025. Having got off to a strong start in the first quarter, we faced a more challenging second quarter due to the situation in the Middle East and the resulting significant increase in jet fuel prices. This resulted in our jet fuel costs almost doubling from the first quarter to the second quarter. We introduced measures to attempt to mitigate some of the increased cost, including adjustments to passenger and cargo fuel surcharges. That we were able to achieve our first -half performance despite these circumstances is testament to the resilience we have built into our business in recent years. Performance of the Cathay Group The Cathay Group, including airlines, subsidiaries and associates, reported an attributable profit of HK$ 6,243 million in the first half of 2026 (2025 first half: HK$3,651 million). The earnings per ordinary share in the first half of 2026 were HK99.5 cents (2025 first half: HK56.7 cents). Our airlines and subsidiaries reported an attributable profit of HK$4,880 million for the first half of 2026 (2025 first half: HK$3,832 million). The net results from associates, the majority of which are recognised three months in arrears, reflected an attributable profit of HK$410 million (2025 first half: loss of HK$181 million). The attributable profit for the first half of 2026 included non -recurring gains of HK$ 1.0 billion, mainly from the non- cash deemed partial disposal gain of approximately HK$1.4 billion arising from the dilution of the Group’s equity interest in Air China Limited (“Air China”) from 15.09% to 12.85% following the completion of Air China’s issuance of new shares as announced by Air China on 9th June 2026. Our first-half result has allowed us to announce a first interim dividend to ordinary shareholders of HK$0.26 per ordinary share, representing a 30% increase when compared with the first interim dividend of 2025. This will be paid on Thursday, 8th October 2026 to ordinary shareholders registered at the close of business on the record date, being Friday, 4th September 2026. Ordinary shares of the Company will be traded ex-dividend as from Wednesday, 2nd September 2026. In February, we completed the buyback of Qatar Airways’ shareholding in the Company, reflecting our long -term confidence in our business prospects. Meanwhile, in April, we completed our first ever Hong Kong dollar bond issuance, which was initially sized at HK$2.08 billion and subsequently increased to HK$2.88 billion amid strong demand. As at 30th June 2026, our available unrestricted liquidity balance was HK$ 23,575 million. Performance of our four lines of business Cathay Pacific’s passenger revenue increased by 26.3% to HK$ 43,203 million compared with the first half of 2025. Cathay Pacific carried a total of 16.0 million passengers in the first half of 2026, an average of around 88,400 per day, which was 17.5% more than the same period in 2025. The increase in revenue was driven by ongoing strong underlying travel demand, amplified by increased transit traffic through Hong Kong as travellers looked to other hubs due to the Middle East situation in the second quarter. We leveraged our network to s trengthen Hong Kong International Airport’s hub status, carrying more transit passengers, bringing more people to Hong Kong to support our economy, and generating more sales from overseas markets. Cathay Cargo’s revenue in the first half of 2026 increased by 23.9% to HK$13,806 million. Total tonnage increased by 8.5% to 869 thousand tonnes. Cathay Cargo’s first-half performance was strong reflecting the sustained demand for cargo capacity, especially across key lanes in our network . Results were boosted by the carriage of high value technology products to support the data centre industry and AI boom. We delivered both tonnage and revenue growth by leveraging our network strength, working closely with key customers and applying disciplined inventory management.
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Interim Results 2026 5 Cathay Lifestyle showed a robust performance in our Asia Miles business, supported by good momentum in our product business (Holidays, Shopping, Insurance and Retail Media). Overall costs for Cathay before subsidiaries and associates increased compared with the first half of 2025. Non -fuel costs for the first half of 2026 increased by 13.1% to HK$35,674 million compared with the same period in 2025. Net fuel costs increased by HK$7,909 million (or 59.1%) compared with the same period in 2025. Our wholly owned low-cost carrier HK Express’s passenger revenue increased by 37.8% to HK$4,139 million compared with the first half of 2025. HK Express carried a total of 4.2 million passengers in the first half of 2026, an average of around 23,000 per day, which was 9.8% more than in the same period in 2025. HK Express reported a loss before net finance charges and taxation of HK$73 million for the first half of 2026 (2025 first half: loss of HK$524 million). The airline showed substantial improvement in its financial results, putting it on the path towards a turnaround in performance. However, its performance was affected by the significant increase in jet fuel prices in the second quarter. Performance of other subsidiaries and associates Air Hong Kong reported a profit before net finance charges and taxation of HK$ 481 million for the first half of 2026 (2025 first half: HK$474 million). Its results have been consistently solid. Results from our airline services subsidiaries improved in the first half of 2026 compared with the same period in 2025. Results from associates, recognised three months in arrears, improved compared with the first half of 2025. This was primarily driven by Air China’s improved performance due to higher capacity deployment, stronger revenue generation, improved yield quality and disciplined cost control, partly offset by elevated jet fuel prices. Outlook Looking ahead, summer travel demand going into the third quarter is looking strong. We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other ma croeconomic factors. We remain on track to reach our 2026 passenger capacity growth target of around 10% as a Group . For cargo, we are cautiously optimistic about the upcoming peak season, and we plan to add freighter services on trunk routes in line with the expected demand surge, while expanding freighter capacity through additional services operated by Air Hong Kong. While jet fuel prices have come down from their peak in the second quarter, recently they have been increasing again due to the escalation of tensions in the Middle East. We expect the impact of elevated fuel prices will continue for the rest of the year and we remain alert to the changing geopolitical and market situation. We continue to make important investments in the future of Cathay and have already committed around HK$150 billion in investments into our fleet, cabin and lounge products, and digital innovation. This investment reflects our commitment to growing our business for the long term, contributing to the development of the Hong Kong international aviation hub and thereby leading to even greater opportunities for Cathay and Hong Kong as a whole. Looking ahead in the next 10 years, we target to have 150 new aircraft join our fleet, and a network serving 150 destinations, if the market conditions are favourable. These aircraft would provide more capacity to support our growth plans and help build connectivity at our home hub. Appreciation As we continue to celebrate “80 Years Together” with Hong Kong this year, I would like to take this opportunity to thank our fantastic team s at Cathay, our loyal customers, and our shareholders. It is through their dedicated service and enduring support that we have been able to achieve the milestones we have reached throughout our eight -decade history, and we look forward to continuing to grow together with Hong Kong for many years to come. Guy Bradley Chair Hong Kong, 5th August 2026
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6 Interim Results 2026 Review of Operations Capacity, Load Factor and Yield Change – Cathay Pacific and Cathay Cargo Capacity ASK/AFTK (million)* Load factor (%) Yield 2026 2025 Change 2026 2025 Change Change Cathay Pacific passenger services Americas 22,485 19,888 +13.1% 91.2 88.4 +2.8%pt +6.1% Southeast Asia and Oceania 19,171 17,492 +9.6% 84.2 82.5 +1.7%pt +12.5% Europe 14,318 12,055 +18.8% 90.2 88.5 +1.7%pt +15.4% North Asia 13,574 12,479 +8.8% 83.3 78.5 +4.8%pt +5.7% South Asia, Middle East and Africa 5,114 4,878 +4.8% 87.4 85.7 +1.7%pt +10.0% Overall 74,662 66,792 +11.8% 87.5 84.8 +2.7%pt +9.4% Cathay Cargo 7,626 7,336 +4.0% 59.2 58.6 +0.6%pt +18.1% * Capacity is measured in available seat kilometres (ASK) for passenger services and available freight tonne kilometres (AFTK) for cargo services. Cathay Pacific Home market – Hong Kong and the wider Greater Bay Area (GBA) • We operated more flights and capacity to provide greater choice for our customers travelling to and from Hong Kong and the wider GBA. • In terms of outbound travel from Hong Kong, the Chinese Mainland emerged as an increasingly popular destination during holiday periods in the first half of 2026. • Demand for our premium cabins from Hong Kong and the wider GBA remained robust, supported by strong business travel and healthy premium leisure travel. • Inbound traffic to Hong Kong recorded healthy growth from across our network. • At the Spring session of this year’s Canton Fair, we continued to operate a dedicated service counter at the exhibition venue and expanded our intermodal service network to include Nansha Ferry Port for the first time. We also extended our ground services into the exhibition hall, providing on -site check -in and baggage services to provide a more seamless and reliable experience as customers embarked on their return or onward journeys. Americas • Load factor in our premium cabins on North America routes improved year on year, supported by strong demand from the region, robust business travel and healthy transit traffic. • Transit traffic via Hong Kong remained robust, particularly from the United States to the Chinese Mainland, and between India and the United States, underscoring Hong Kong’s global connectivity. • In March 2026, we launched a non-stop five-times-weekly service to Seattle, further expanding our network in the North America market. • As at 30th June 2026, Cathay Pacific’s scheduled passenger services covered nine destinations in the Americas. Southeast Asia and Oceania • Robust demand from Southeast Asia and Oceania to Hong Kong was further supported by increased volumes of transit passengers through Hong Kong to destinations in the Americas, Europe and North Asia. • From March 2026, we have increased our daily service to Kuala Lumpur from three return flights per day to four, enhancing connectivity for our customers. • We announced that we would be suspending our winter service to Cairns from October 2026, and we will continue to regularly review our schedule and network to best align with market demand. • As at 30th June 2026, Cathay Pacific’s scheduled passenger services covered 20 destinations in Southeast Asia and Oceania. Europe • Europe’s performance was boosted by changes in traffic flows due to the Middle East situation during the first half of 2026, particularly on itineraries connecting Europe and Oceania via Hong Kong. • Following the temporary suspension of our services to Dubai and Riyadh, we mounted additional flights and capacity to Europe in March and April to cater for an upsurge in market demand as passengers prioritised alternative routings. • As at 30th June 2026, Cathay Pacific’s scheduled passenger services covered 12 destinations in Europe.
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Interim Results 2026 7 North Asia • Our Chinese Mainland routes continued to perform well, supported by robust demand from both outbound traffic from Hong Kong and inbound traffic from the Chinese Mainland. In addition, transit traffic through Hong Kong to and from the Chinese Mainland recorded solid growth, further reinforcing the city’s role as an international aviation hub. • We announced that we would be increasing flights to Xi’an starting 11th July 2026, bringing frequencies from a daily service to 12 return flights per week. • In March 2026, we expanded our Seoul service from four daily flights to five, providing customers with greater choice and convenience. • As at 30th June 2026, Cathay Pacific’s scheduled passenger services covered 28 destinations in North Asia. South Asia, the Middle East and Africa • In light of the situation in the Middle East, followed by softened demand for travel to the region, we have temporarily suspended our Dubai and Riyadh passenger flights since March 2026. • We announced plans to launch flights to Almaty in the first quarter of 2027, marking our first destination in Central Asia and strengthening Hong Kong’s connectivity with an important Belt and Road region. • As at 30th June 2026, Cathay Pacific’s scheduled passenger services covered 11 destinations in South Asia, the Middle East and Africa. Cathay Cargo Home market – Hong Kong and the wider Greater Bay Area (GBA) • As the largest cargo carrier at HKIA, Cathay Cargo was proud to be a key contributor to it being named the world’s busiest cargo airport for the 15th time since 2010. • We offered over 90 return freighter flights a week to more than 40 destinations across our global network, in addition to utilising belly space on the Cathay Group’s passenger flights to over 100 destinations worldwide from our Hong Kong hub. Americas • As at 30th June 2026, we operated freighters to 12 destinations in the Americas, in addition to utilising belly space on Cathay Pacific’s passenger flights. • We ramped up freighter frequencies on transpacific routes in March 2026 ahead of quarter -end peak demand. • Inbound traffic into Hong Kong remained robust, underpinned by steady general cargo and perishable exports from North America. • We recorded healthy flows to South Asia, the Middle East and Africa in March and April 2026, driven by shifts in market capacity. • Demand for our Cathay Secure solution remained strong, driven by consistent volumes of high -value cargo from North America to Hong Kong. Southeast Asia and Oceania • As at 30th June 2026, we operated freighters to 11 destinations in Southeast Asia and Oceania, in addition to utilising belly space on the Cathay Group’s passenger flights. • We launched a weekly freighter service to Bangkok in May 2026, marking the return of our dedicated freighter flights to the city following our last regular freighter operation 10 years ago. • Strong export momentum to the Americas was observed, led by high -tech electronics from Southeast Asia, supporting growth in our Cathay Priority solution as customers sought assured capacity and speed. • Exports of fresh fruit and seafood from Southeast Asia and Oceania into the Greater Bay Area and key Asian cities continued to drive demand for our Cathay Fresh solution. North Asia • As at 30th June 2026, we operated freighters to nine destinations in North Asia, in addition to utilising belly space on the Cathay Group’s passenger flights. • Export activity from the Chinese Mainland remained resilient, particularly on Europe- and intra-Asia-bound routes, driven by general cargo and high-tech electronics. • Regional semiconductor shipments continued to underpin growth in our Cathay Expert solution. • Exports of lithium batteries from Japan to South Asia, the Middle East and Africa, as well as automotive parts to Europe, supported steady demand for our Cathay Dangerous Goods solution .
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8 Interim Results 2026 Europe • As at 30th June 2026, we operated freighters to five destinations in Europe, in addition to utilising belly space on Cathay Pacific’s passenger flights. • We operated one additional freighter on the Amsterdam -Paris route in March 2026 to support quarter -end demand. • We saw solid flows of consolidation cargo into Hong Kong and Southeast Asia, partially supported by changes in market capacity dynamics. • Performance of our Cathay Pharma and Cathay Secure solutions was strong, supported by sustained pharmaceutical shipments into Asia and high-value cargo movements into Hong Kong. • We successfully transported approximately 60 elite showjumping horses from Europe to Hong Kong for the Longines Hong Kong International Horse Show 2026, highlighting our expertise in live animal logistics as the event’s founding partner. South Asia, the Middle East and Africa • As at 30th June 2026, we operated freighters to six destinations in South Asia, the Middle East and Africa, in addition to utilising belly space on Cathay Pacific’s passenger flights. • Demand into Southeast Asia remained steady, supported by general cargo and pharmaceutical shipments. • We have temporarily suspended our freighter flights serving Dubai and Riyadh since March 2026 due to the situation in the Middle East. Cathay Lifestyle Cathay Lifestyle’s vision is to become a leading premium travel lifestyle brand by building deep, engaging relationships with customers through curated products and experiences throughout their lifetime. We interact with customers beyond their journeys, fo ster loyalty, and leverage relationships for additional value. This includes Asia Miles, our established mileage business, and new product sales businesses which include hotels, retail, experiences and insurance. Both streams provide access to the Cathay membership programme and Asia Miles, allowing members to earn and use miles for full or partial payment.
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Interim Results 2026 9 Financial Review Revenue Cathay Group The Company Six months ended 30th June Six months ended 30th June 2026 2025 2026 2025 HK$M HK$M Change HK$M HK$M Change Passenger services 47,342 37,212 +27.2% 43,203 34,208 +26.3% Cargo services 15,702 12,761 +23.0% 13,806 11,141 +23.9% Other services and recoveries 5,017 4,336 +15.7% 5,040 4,369 +15.4% Total revenue 68,061 54,309 +25.3% 62,049 49,718 +24.8% Cathay Pacific passenger revenue increased by 26.3% compared with a 11.8% increase in available seat kilometres. Cathay Cargo revenue increased by 23.9%, compared with a 4.0% increase in available freight tonne kilometres. Revenue from other services and recoveries increased by 15.4%. Operating Expenses Cathay Group The Company Six months ended 30th June Six months ended 30th June 2026 2025 2026 2025 HK$M HK$M Change HK$M HK$M Change Employee 10,287 9,382 +9.6% 8,134 7,444 +9.3% Inflight service and passenger expenses 3,140 2,583 +21.6% 3,104 2,548 +21.8% Landing, parking and route expenses 9,367 8,076 +16.0% 8,530 7,249 +17.7% Fuel, including hedging (gains)/losses 23,224 14,654 +58.5% 21,299 13,390 +59.1% Aircraft maintenance 5,648 4,295 +31.5% 4,932 3,679 +34.1% Aircraft depreciation and rentals 4,739 4,589 +3.3% 4,431 4,257 +4.1% Other depreciation, amortisation and rentals 1,522 1,401 +8.6% 1,113 1,041 +6.9% Others 3,539 3,403 +4.0% 4,482 4,268 +5.0% Operating expenses 61,466 48,383 +27.0% 56,025 43,876 +27.7% Net finance charges 1,088 1,477 -26.3% 948 1,066 -11.1% Total operating expenses 62,554 49,860 +25.5% 56,973 44,942 +26.8% • The Group’s and the Company’s total operating expenses increased by 25.5% and 26.8% respectively. • The Company’s ATK increased 7.6% from 13,699 million to 14,739 million. • The cost per ATK (with fuel) of the Company increased from HK$3.28 to HK$ 3.87, an increase of 18.0%. • The cost per ATK (without fuel) of the Company increased from HK$2.30 to HK$ 2.42, an increase of 5.2%.
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10 Interim Results 2026 Operating Results Analysis Six months ended 30th June 2026 2025 HK$M HK$M Change The Company’s profit before non-recurring items and taxation 5,076 4,776 +6.3% Taxation (546) (746) -26.8% The Company’s profit after taxation and before non-recurring items 4,530 4,030 +12.4% Subsidiaries’ results 350 (198) +276.8% The Company and subsidiaries’ profit after taxation and before non -recurring items 4,880 3,832 +27.3% Share of associates’ results 410 (181) +326.5% Profit attributable to the shareholders of the Cathay Group after taxation and before non-recurring items 5,290 3,651 +44.9% Gain on deemed partial disposal of an associate (note a) 1,432 - N/A Net loss on other non-recurring items (479) - N/A Profit attributable to the shareholders of the Cathay Group 6,243 3,651 +71.0% Recurring underlying profit attributable to the shareholders of the Cathay Group (note b) 5,290 3,651 +44.9% Notes: (a) Please refer to note 4 below. (b) The recurring underlying profit for the six months ended 30th June 2026 was calculated excluding non -recurring items, which included a gain on deemed partial disposal of an associate, a gain on disposal of an associate and a provision arising from a historical payment matter. The movement in the Company’s profit before non-recurring items and taxation can be analysed as follows: HK$M The Company’s 2025 interim profit before non-recurring items and taxation 4,776 Increase of revenue: - Passenger and cargo revenue 11,660 - Passenger revenue increased as a result of 15.3% increase in traffic, along with a 9.4% increase in yield. - Cargo revenue increased due to 4.0% increase in capacity in freighter and passenger fleet belly space, along with an 18.1% increase in yield. - Other services and recoveries 671 - Increase due to higher passenger volumes and more mileage sales. Increase of costs: - Employee (690) - Increased due to higher headcount as capacity increased, as well as salary increments. - Inflight service and passenger expenses (556) - Increased due to higher passenger volumes as well as enhancements to dining propositions aiming at improving customer experience. - Landing, parking and route expenses (1,281) - Increased due to operating additional capacity to long-haul destinations. - Fuel, including hedging (gains)/losses (7,909) - Increased fuel costs were mainly due to the surge in jet fuel prices due to Middle East situation, as well as higher fuel consumption as capacity increased. - Aircraft maintenance (1,253) - Higher due to increased aircraft flying hours and timing of regular maintenance checks, with a concentration of scheduled overhauls during the period. - Owning the assets (includes aircraft and other depreciation, rentals and net finance charges) (128) - Impact of lounge enhancements, partially offset by savings in net finance charges. - Other items (214) - Sales commissions and distribution expenses increased on more traffic. The Company’s 2026 interim profit before non- recurring items and taxation 5,076
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Interim Results 2026 11 Fuel Expenditure and Hedging A breakdown of the Group’s fuel cost is shown below: Six months ended 30th June 2026 2025 HK$M HK$M Gross fuel cost 24,102 14,436 Fuel hedging (gains)/losses (878) 218 Net fuel cost 23,224 14,654 Fuel costs increased mainly due to 53.2% increase in the average into -plane fuel price, as well as a 9.0% increase in consumption. Financial Position Financial position as at 30th June 2026. The comparative period references 31st December 2025. • Additions to property, plant and equipment during the six months period to 30th June 2026 were HK$3,490 million, comprising HK$3,038 million in respect of aircraft and related equipment, HK$ 356 million in respect of land and buildings and HK$96 million in respect of other equipment. • Borrowings (being loans and other borrowings, and lease liabilities) increased by 7.4% to HK$ 63,495 million. Excluding leases without asset transfer components, borrowings increased by 10.5% to HK$53,725 million, which are fully repayable by 2035, with 46% at fixed rates of interest after taking into account derivative transactions. Borrowings are predominately denominated in United States dollars and Hong Kong dollars and the maturity profile of these borrowings has not changed materially from the information set out in the 2025 Annual Report. • Available unrestricted liquidity at 30th June 2026 totalled HK$23,575 million, comprising liquid funds of HK$16,228 million and committed undrawn facilities of HK$ 7,989 million, less bank overdrafts of HK$639 million and pledged funds of HK$3 million. Liquid funds are predominately denominated in United States dollars and Hong Kong dollars. • Net borrowings (after deducting liquid funds) increased by 1.0% to HK$ 47,267 million. Excluding leases without asset transfer components, net borrowings increased by 3.1% to HK$37,497 million. • Funds attributable to the shareholders of the Cathay Group decreased by 3.5% to HK$58,018 million. This was due to the Group’s attributable profit for the period of HK$ 6,243 million, increase in other comprehensive income of HK$2,534 million, ordinary shares repurchase and convertible bonds conversion of HK$ 6,977 million and dividend distributed to ordinary shareholders of HK$3,892 million. • Excluding leases without asset transfer components, the net debt/equity ratio increased from 0.60 times to 0.65 times (against borrowing covenants of 2.0). Taking into account the effect of adopting HKFRS 16 on net borrowings, the net debt/equity ratio increased from 0.78 times to 0.81 times. • The Group’s policies in relation to financial risk management including the management of currency, interest rate and fuel price exposures and the use of financial instruments to hedge these exposures are set out in the 2025 Annual Report.
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12 Interim Results 2026 Review of the Performance of Key Subsidiaries and Associates • HK Express recorded a loss before net finance charges and taxation of HK$ 73 million in the first half of 202 6, compared with a loss before net finance charges and taxation of HK$524 million in the first half of 2025. In the first half of 202 6, HK Express carried a total of 4.2 million passengers, an increase of 9.8% compared with the same period in 202 5. The average flown load factor was 80.9%, a n increase of 2.0 percentage points. Available seat kilometres amounted to 9,426 million. • AHK Air Hong Kong Limited recorded a profit in the first half of 202 6, at a similar level compared with the same period in 2025. • The financial results of Cathay Pacific Catering Services (H.K.) Limited as well as flight kitchens outside Hong Kong in the first half of 2026 were at a similar level compared to the same period in 2025. • The financial results of Cathay Pacific Services Limited in the first half of 2026 improved compared with the same period in 2025. • The financial results of Hong Kong Airport Services Limited for the first half of 2026 were at a similar level compared with the same period in 2025. • The financial results of Vogue Laundry Service Limited for the first half of 2026 improved compared with the same period in 2025. • The Group’s share of Air China Limited’s (“Air China”) results is based on its financial statements drawn up three months in arrears. Consequently, our 2026 interim results include Air China’s results for the six months ended 31st March 2026. For the six months ended 31st March 2026, Air China’s financial results improved compared to those for the six months ended 31st March 2025. • Air China Cargo Co., Ltd. (“Air China Cargo”), in which the Cathay Group owns an equity and economic interest totalling 21.01%, is a leading provider of air cargo services in the Chinese Mainland. Our share of Air China Cargo’s results is based on its financial statements drawn up three months in arrear s. Consequently, our 2026 interim results include Air China Cargo’s results for the six months ended 31st March 2026.
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Interim Results 2026 13 Sustainability Leadership • Cathay renewed our agreement with DHL Express, together with DHL Global Forwarding. The total committed SAF volume for 2026 under this partnership is over 13,440 tonnes - more than four times the amount recorded in 2025, equivalent to approximately 41,710 tonnes of lifecycle CO2 emissions reduced. • Cathay introduced the HK7s Superfan Impact Pass, our first business -to-consumer, event-based SAF offering. This new initiative integrates SAF contributions into the travel and lifestyle experience around the Cathay/HSBC Hong Kong Sevens, driving greater SAF public awareness and engagement. • Marking Cathay’s 80th anniversary, we set an ambition to positively impact 80,000 lives in 2026, through an expanded range of community programmes and partnerships, including with Rugby For Good and HandsOn Hong Kong. • In collaboration with Rugby For Good, we launched the Cathay GET, SET, MOVE programme to engage primary and secondary school students through rugby-based activities that foster mental and physical wellbeing, promoting the Hong Kong SAR Government’s 4Rs Charter – Rest, Relaxation, Resilience and Relationship. • With HandsOn Hong Kong, we are supporting year-round volunteer efforts for charities across Hong Kong, including elderly care, youth mentoring and environmental conservation, encouraging more people and Cathay volunteers to participate in community service. • In collaboration with the Hong Kong Youth Aviation Academy, we hosted the 2025 Cathay Inter -School Aviation Challenge Cup in January 2026, bringing together young aviation enthusiasts through interactive learning and teamwork. The 2026 edition will be held later this year. • We regularly review our People Policies and Employee Value Propositions in alignment with legislation, industry practices and market conditions, as well as taking into account individual and collective performance to ensure that our employee remuneration remains competitive and fair. • As at 30th June 2026, the Group employed more than 33,000 people worldwide, with around 28,000 employed in Hong Kong.
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14 Interim Results 2026 Consolidated Statement of Profit or Loss for the six months ended 30th June 2026 – Unaudited 2026 2025 Note HK$M HK$M Revenue Passenger services 47,342 37,212 Cargo services 15,702 12,761 Other services and recoveries 5,017 4,336 Total revenue 68,061 54,309 Expenses Employee (10,287) (9,382) Inflight service and passenger expenses (3,140) (2,583) Landing, parking and route expenses (9,367) (8,076) Fuel, including hedging gains/(losses) (23,224) (14,654) Aircraft maintenance (5,648) (4,295) Aircraft depreciation and rentals (4,739) (4,589) Other depreciation, amortisation and rentals (1,522) (1,401) Others (3,539) (3,403) Operating expenses (61,466) (48,383) Operating profit before non-recurring items 6,595 5,926 Gain on deemed partial disposal of an associate 4 1,432 - Net loss on other non-recurring items (479) - Operating profit 5 7,548 5,926 Finance charges (1,416) (1,693) Finance income 328 216 Net finance charges (1,088) (1,477) Share of profits/(losses) of associates 440 (128) Profit before taxation 6,900 4,321 Taxation 6 (656) (670) Profit for the period 6,244 3,651 Profit for the period attributable to Ordinary shareholders of the Cathay Group 6,243 3,651 Non-controlling interests 1 - Profit for the period 6,244 3,651 Recurring underlying profit attributable to shareholders of the Cathay Group* 5,290 3,651 Earnings per ordinary share Basic 7 99.5¢ 56.7¢ Diluted 7 99.5¢ 54.8¢ * The recurring underlying profit for the six months ended 30th June 2026 was calculated excluding non-recurring items, which included a gain on deemed partial disposal of an associate of HK$1,432 million (2025: nil) and net loss on other non-recurring items of HK$479 million (2025: nil).
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Interim Results 2026 15 Consolidated Statement of Other Comprehensive Income for the six months ended 30th June 2026 – Unaudited 2026 2025 HK$M HK$M Profit for the period 6,244 3,651 Other comprehensive income Items that will or may be reclassified subsequently to profit or loss: Cash flow hedges - gains/(losses) recognised during the period 3,019 (2,148) - (gains)/losses transferred to profit or loss (770) 106 - deferred taxation (liability)/asset (220) 213 Share of other comprehensive income of associates - recognised during the period (130) (24) - reclassified to profit or loss upon disposal and deemed partial disposal 147 - Exchange differences on translation of foreign operations - gains recognised during the period 599 513 - reclassified to profit or loss upon disposal and deemed partial disposal of associates (112) - Item that will not be reclassified subsequently to profit or loss: Defined benefit plans - remeasurement gains/(losses) recognised during the period 1 (2) Other comprehensive income for the period, net of taxation 2,534 (1,342) Total comprehensive income for the period 8,778 2,309 Total comprehensive income attributable to Ordinary shareholders of the Cathay Group 8,777 2,309 Non-controlling interests 1 - 8,778 2,309
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16 Interim Results 2026 Consolidated Statement of Financial Position at 30th June 2026 – Unaudited 30th June 2026 31st December 2025 Note HK$M HK$M ASSETS AND LIABILITIES Non-current assets and liabilities Property, plant and equipment 115,861 117,856 Intangible assets 14,268 14,335 Investments in associates 18,869 17,317 Other long-term receivables and investments 3,679 3,583 Deferred tax assets 1,437 1,430 154,114 154,521 Interest-bearing liabilities 8 (45,960) (45,193) Other long-term payables (4,154) (3,882) Other long-term contract liabilities (127) (145) Deferred tax liabilities (9,083) (8,671) (59,324) (57,891) Net non-current assets 94,790 96,630 Current assets and liabilities Stock 2,066 1,864 Trade and other receivables 9 10,255 8,377 Liquid funds 10 16,228 12,289 28,549 22,530 Interest-bearing liabilities 8 (17,535) (13,908) Trade and other payables 11 (20,902) (22,203) Contract liabilities (25,524) (21,650) Taxation (1,352) (1,282) (65,313) (59,043) Net current liabilities (36,764) (36,513) Total assets less current liabilities 117,350 118,008 Net assets 58,026 60,117 CAPITAL AND RESERVES Share capital 12 24,165 31,123 Reserves 33,853 28,987 Funds attributable to the shareholders of the Cathay Group 58,018 60,110 Non-controlling interests 8 7 Total equity 58,026 60,117
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Interim Results 2026 17 Consolidated Statement of Cash Flows for the six months ended 30th June 2026 - Unaudited 2026 2025 HK$M HK$M Operating activities Cash generated from operations 15,057 12,615 Interest received 224 144 Interest paid (1,198) (1,446) Tax paid (410) (160) Net cash inflow from operating activities 13,673 11,153 Investing activities Net increase in liquid funds other than cash and cash equivalents (4,811) (375) Net decrease/(increase) in other long-term receivables and investments 151 (6) Payments for property, plant and equipment and intangible assets (3,707) (4,094) Proceeds from sales of property, plant and equipment 24 20 Proceeds from sale of an associate 779 - Dividends received 75 174 Repayment from associates 16 14 Net cash outflow from investing activities (7,473) (4,267) Financing activities Loans drawn and refinancing 11,305 6,572 Loan and principal elements of lease payments (7,809) (12,547) Shares repurchase (6,987) - Dividends paid – ordinary shares (3,892) (3,155) Net cash outflow from financing activities (7,383) (9,130) Net decrease in cash and cash equivalents (1,183) (2,244) Cash and cash equivalents at 1st January 7,990 5,444 Effect of exchange differences 53 121 Cash and cash equivalents at 30th June 6,860 3,321
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18 Interim Results 2026 Notes: 1. Basis of preparation and accounting policies The interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and Hong Kong Ac counting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). It was authorised for issue on 5th August 2026. The financial information relating to the year ended 31st December 2025 that is included in this document as comparative information does not constitute the Company’s statutory annual consolidated financial statements for that year but is derived from those financial statements. The non-statutory accounts (within the meaning of section 436 of the Companies Ordinance (Cap. 622 of the laws of Hong Kong) (the “Ordinance”)) in this document are not specified financial statements (within such meaning). The specified financial statements for the year ended 31st December 2025 have been delivered to the Registrar of Companies in Hong Kong in accordance with section s 662(3) and 664 of the Ordinance. An auditor’s report has been prepared on those specified financial statements. That report was not qualified or otherwise modified, did not refer to any matter to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 406(2), 407(2) or 407(3) of the Ordinance . The accounting policies, methods of computation and presentation used in the preparation of the condensed financial statements for the six months ended 30th June 2026 are consistent with those described in the annual financial statements for the year ended 31st December 2025. 2. Changes in accounting policies The Group has applied the following amended HKFRS Accounting Standards issued by the HKICPA to this interim financial report for the current accounting period: • Amendments to HKFRS 9, Financial instruments and HKFRS 7, Financial instruments: disclosures – Amendments to the classification and measurement of financial instruments • Amendments to HKFRS 9 and HKFRS 7 – Contracts referencing nature dependent electricity • Annual Improvements to HKFRS Accounting Standards – Volume 11 The amended HKFRS Accounting Standards do not have a material impact on these Condensed Financial Statements and accounting policies. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
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Interim Results 2026 19 3. Segment information (a) Segment results Six months ended 30th June 2026 The Company (note i) HK Express Air Hong Kong Airline services Associates Total HK$M HK$M HK$M HK$M HK$M HK$M Profit or loss Sales to external customers 61,267 4,367 1,865 562 68,061 Inter-segment sales 782 - 5 2,622 3,409 Segment revenue 62,049 4,367 1,870 3,184 71,470 Segment profit/(loss), before exceptional items 6,024 (73) 481 163 - 6,595 Gain on deemed partial disposal of an associate 1,432 - - - - 1,432 Net loss on other non-recurring items (479) - - - - (479) Segment profit/(loss) 6,977 (73) 481 163 - 7,548 Share of profits of associates - - - - 440 440 Profit/(loss) before net finance charges and taxation 6,977 (73) 481 163 440 7,988 Corporate items Net finance charges (1,088) Taxation (656) Profit for the period 6,244 Non-controlling interests (1) Profit attributable to the shareholders of the Cathay Group 6,243 Six months ended 30th June 2025 The Company (note i) HK Express Air Hong Kong Airline services Associates Total HK$M HK$M HK$M HK$M HK$M HK$M Profit or loss Sales to external customers 48,986 3,171 1,595 557 54,309 Inter-segment sales 732 - 5 2,288 3,025 Segment revenue 49,718 3,171 1,600 2,845 57,334 Segment profit/(loss) 5,842 (524) 474 134 - 5,926 Share of losses of associates - - - - (128) (128) Profit/(loss) before net finance charges and taxation 5,842 (524) 474 134 (128) 5,798 Corporate items Net finance charges (1,477) Taxation (670) Profit for the period 3,651 Non-controlling interests - Profit attributable to the shareholders of the Cathay Group 3,651 (i) These amounts are sub-consolidated with insignificant financial results of certain subsidiaries. (ii) The Company provides full -service international passenger and cargo air transportation. Management considers that there is no reasonable and complete basis for allocating operating results fully between passenger and cargo operations. Accordingly these ope rations are not disclosed as separate business segments. (iii) HK Express is a low cost passenger carrier offering scheduled services within Asia. (iv) Air Hong Kong provides express cargo air transportation offering scheduled services within Asia. (v) Airline services represents our supporting airline operations including catering, cargo terminal operations, ground handling services and commercial laundry operations. (vi) Associates represents the share of results from associates held by the Group under the equity method.
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20 Interim Results 2026 3. Segment information (continued) The composition of reportable segments of the Group is determined based on the nature of the business. Segment information is reported in a manner consistent with the internal financial reports provided to the Executive Directors for making strategic decisions. Inter-segment sales are based on prices set on an arm’s length basis . (b) Geographical information Six months ended 30th June 2026 2025 HK$M HK$M Revenue by origin of sale: North Asia - Chinese Mainland, Hong Kong and Taiwan 35,494 30,078 - Japan and Korea 2,937 2,151 Southeast Asia and Oceania 9,906 7,024 Americas 9,720 7,934 Europe 7,042 4,852 South Asia, Middle East and Africa 2,962 2,270 68,061 54,309 A geographic analysis of segment assets is not disclosed for the reasons set out in the 2025 Annual Report . 4. Gain on deemed partial disposal of an associate Air China On 9th June 2026, the Group’s interest in Air China was diluted from 15.09% to 12.85%, as a result of Air China issuing 3,044 million new A shares to investors with proceeds of the issuance totalling RMB20 billion . As a result of the above share issuance completed during the period ended 30th June 2026, gain on deemed partial disposal of HK$1,432 million was recognised, principally reflecting the change in the Group’s share of net assets of Air China immediately before and after the dilutions. 5. Operating profit Six months ended 30th June 2026 2025 HK$M HK$M Operating profit has been arrived at after charging/(crediting): Depreciation of property, plant and equipment - right-of-use assets 1,517 1,690 - owned 4,113 3,709 Amortisation of intangible assets 316 332 Expenses relating to short-term leases and leases of low-value assets 9 6 Losses/(gains) on disposal of property, plant and equipment, net 34 (2) Cost of stock expensed 1,208 934 Exchange differences, net 50 97 Auditors’ remuneration 8 8 Government grants (83) (87) Dividend income from unlisted equity investments (63) (141)
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Interim Results 2026 21 6. Taxation Six months ended 30th June 2026 2025 HK$M HK$M Current tax expenses - Hong Kong profits tax 197 210 - overseas tax 209 112 - under/(over) provisions for prior years 26 (68) Deferred tax expense - origination and reversal of temporary differences 224 416 656 670 Hong Kong profits tax is calculated at 16.5% (2025: 16.5%) on the estimated assessable profits for the period. Overseas tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax provisions are reviewed regularly to take into account changes in legislation, practice and the status of negotiations with tax authorities. The Group is subject to the Organisation for Economic Co -operation and Development (“OECD”) Global Anti -Base Erosion Model Rules (“Pillar Two model rules”) for global minimum tax reform. Hong Kong has enacted the legislation for Pillar Two effective from 1 st January 2025. Based on the Group’s current assessment and quantification, the estimated exposure is currently estimated at HK$ 127 million for the period ended 30th June 2026. However, some degree of uncertainty remains, as the OECD’s Inclusive Framework on Pillar Two has indicated that further guidance on Substance -Based Income Exclusion rules for assets and employees is forthcoming. The Group has applied the temporary mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. 7. Earnings per ordinary share 2026 2025 Profit(a) HK$M Weighted average number of ordinary shares Per share amount HK cents Profit(a) HK$M Weighted average number of ordinary shares Per share amount HK cents Basic earnings per ordinary share 6,243 6,272,865,886 99.5 3,651 6,439,409,250 56.7 Effect of dilutive potential ordinary shares(b) - Convertible bonds and its after tax effect of effective interest - 1,262,287 32 279,668,493 Diluted earnings per ordinary share 6,243 6,274,128,173 99.5 3,683 6,719,077,743 54.8 (a) The amounts represent the profit attributable to the ordinary shareholders of the Cathay Group, which is the profit for the period after non-controlling interests and dividends attributable to the holder of the cumulative preference shares classified as equity. (b) The Company’s convertible bonds as at 30th June 2025 and 2026 have a dilutive effect to the earnings per ordinary share. The dilutive impact is presented above. Please refer to note 12 below for the background and details of convertible bonds.
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22 Interim Results 2026 8. Interest-bearing liabilities 30th June 2026 31st December 2025 HK$M HK$M Non-current liabilities: Loans and other borrowings 25,070 22,249 Lease liabilities 20,890 22,944 45,960 45,193 Current liabilities: Loans and other borrowings 13,221 10,176 Lease liabilities 4,314 3,732 17,535 13,908 Total borrowings 63,495 59,101 Liquid funds (16,228) (12,289) Net borrowings 47,267 46,812 Included in other borrowings, HK$ 3,434 million (31st December 2025: HK$3,511 million) relates to sale -and- leaseback financing arrangements without asset transfer components at the end of contract term. Included in lease liabilities, HK$ 9,770 million (31st December 2025: HK$10,460 million) pertains to leases without asset transfer components, and HK$ 15,434 million (31st December 2025: HK$16,216 million) pertains to leases with asset transfer components. During the six months ended 30th June 2026, the Group issued HK$2,880 million listed notes (31st December 2025: nil) under the Group’s US$2.5 billion Medium Term Note Programme. 9. Trade and other receivables 30th June 2026 31st December 2025 HK$M HK$M Trade debtors, net of loss allowances 5,417 5,228 Derivative financial assets - current portion 1,046 193 Other receivables and prepayments 3,778 2,926 Due from associates and other related companies 14 30 10,255 8,377 30th June 2026 31st December 2025 HK$M HK$M Analysis of trade debtors (net of loss allowances) by invoice date: Within one month 5,058 4,618 One to three months 349 596 More than three months 10 14 5,417 5,228
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Interim Results 2026 23 10. Liquid funds 30th June 2026 31st December 2025 HK$M HK$M Cash and cash equivalents Short-term deposits and bank balances 7,499 8,468 Other liquid funds Short-term deposits maturing beyond three months when placed 4,814 - Funds with investment managers - debt securities listed outside Hong Kong 3,912 3,803 - bank deposits - 15 Other liquid investments - debt securities listed outside Hong Kong 3 3 Liquid funds 16,228 12,289 Included in other liquid investments are debt securities of HK$3 million (31st December 2025: HK$3 million) which are pledged as part of long-term financing arrangements. The arrangements provide that these deposits and debt securities must be maintained at specified levels for the duration of the financing . Available unrestricted funds to the Group are as follows: 30th June 2026 31st December 2025 HK$M HK$M Liquid funds 16,228 12,289 Less: amounts pledged as part of long-term financing - debt securities listed outside Hong Kong (3) (3) Less: bank overdrafts (639) (478) Committed undrawn facilities 7,989 13,149 Available unrestricted liquidity to the Group 23,575 24,957 Committed undrawn facilities may be drawn at any time in either Hong Kong dollar or United States dollar . 11. Trade and other payables 30th June 2026 31st December 2025 HK$M HK$M Trade creditors 10,601 9,529 Derivative financial liabilities – current portion 404 1,402 Other payables 9,451 10,671 Due to associates 94 91 Due to other related companies 352 510 20,902 22,203 30th June 2026 31st December 2025 HK$M HK$M Analysis of trade creditors by invoice date: Within one month 10,224 9,122 One to three months 330 334 More than three months 47 73 10,601 9,529
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24 Interim Results 2026 12. Share capital 30th June 2026 31st December 2025 Number of shares HK$M Number of shares HK$M Issued and fully paid Ordinary shares At 1st January 6,722,856,511 31,123 6,439,409,250 28,841 Convertible bonds conversion (note 12(a)) 1,347,708 11 283,447,261 2,282 Ordinary shares repurchase (note 12(b)) (643,076,181) - - - Capital reduction (note 12(c)) - (6,969) - - At 30th June / 31st December 6,081,128,038 24,165 6,722,856,511 31,123 Treasury shares At 1st January - - - - Conversion of ordinary shares to treasury shares (note 12(b)) 643,076,181 - - - Cancellation of treasury shares (note 12(b)) (643,076,181) - - - At 30th June / 31st December - - - - Save as described in this note, there was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company’s ordinary shares (including sale of treasury shares) during the six months ended 30th June 2026 . The Group has not adopted any share option scheme or share award scheme. As at 30th June 2026, 6,081,128,038 ordinary shares were in issue (31st December 2025: 6,722,856,511 ordinary shares). (a) On 5th February 2021, Cathay Pacific Finance III Limited , a wholly -owned subsidiary of the Company, as the issuer and the Company as the guarantor completed the issuance of HK$6,740 million guaranteed convertible bonds at a rate of 2.75%, with maturity in 2026 (the “Bonds”). The Bonds would be convertible at an initial conversion price of HK$8.57 per ordinary share and convertible up to 786,464,410 ordinary shares of the Company. The Bonds are accounted for as compound financial instruments, with both a liability component and an equity component. As a result of the interim dividend declared in 2025, the conversion price of the Bonds was adjusted to HK$7.42 per ordinary share with effect from 6th September 2025. On 15th January 2026 and 20th January 2026, 808,625 ordinary shares and 539,083 ordinary shares were issued at HK$7.42 each representing an aggregate principal amount of HK$10 million. On 14th November 2024, Cathay Pacific Finance III Limited as the issuer and the Company entered into a Dealer Manager Agreement with dealers for the repurchase of the Bonds at HK$9.3663 (the “Bonds Repurchase”). A total principal amount of HK$6,722 million of the Bonds was then outstanding, out of which HK$4,558 million, representing 67.89% in aggregate principal amount of the Bonds, was repurchased, settled and cancelled by 2nd January 2025 under the Bonds Repurchase. For the year ended 31st December 2025, convertible bonds in a total principal amount of HK$2,134 million were converted, and a total of 283,447,261 ordinary shares were issued as a result of such conversions. After completion of the Bonds Repurchase and the conversions of Bonds in 2025, the outstanding principal amount of the Bonds was HK$30 million as at 31st December 2025. During the period, convertible bonds in a total principal amount of HK$10 million (for the period ended 30th June 2025: nil) were converted at the conversion price of HK$7.42 per ordinary share, and a total of 1,347,708 (for the period ended 30th June 2025: nil) ordinary shares were issued. The maturity date (the “Maturity Date”) of the Bonds was 5th February 2026 and the exercise of conversion right attaching to the Bonds was up to the close of business on 26th January 2026, which was the 10th day prior to the Ma turity Date. The outstanding Bonds in the principal amount of HK$20 million were redeemed by the Company, together with accrued and unpaid interest thereon on the Maturity Date.
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Interim Results 2026 25 12. Share capital (Continued) (b) On 12th February 2026, an extraordinary general meeting of the Company (“EGM”) was held to approve an off-market share buy-back by the Company of the 643,076,181 ordinary shares (the “Buy-back Shares”) owned by Qatar Airways Group Q.C.S.C. (“Qatar Airways” ) at the buy -back price of HK$10.8374 for each Buy -back Share (the “Share Buy -back”), representing all of the ordinary shares owned by Qatar Airways as of the date of the EGM. The total consideration for the Share Buy-back was HK$6,969 million. The Company announced on 24th February 2026 that, the Share Buy -back was completed on the same date, and the Buy-back Shares was held by the Company as treasury shares (the “Treasury Shares”). On 11th March 2026, the Board, having considered, amongst other s, the Company’s latest assessment on market conditions and capital management needs, approved, and the Company would proceed with the cancellation of the 643,076,181 Treasury Shares. The Treasury Shares were cancelled on 26th March 2026. (c) On 15th April 2026, the Company announced a proposed capital reduction by way of a reduction in the credit standing to the share capital account of the Company by an amount of HK$6,969 million (the “Capital Reduction”). The Capital Reduction would offset t he reduction in the distributable reserves of the Company arising from the Share Buy -back. The credit arising from the Capital Reduction would be applied to a capital reduction reserve account of the Company and would be regarded as distributable reserves of the Company in accordance with the Ordinance. The Capital Reduction was approved at the annual general meeting of the Company on 13th May 2026 and became effective on 22nd June 2026. Details of issue of the Bonds, adjustment to the conversion price of the Bonds, Bonds Repurchase, Share Buy-back and Capital Reduction can be found in the Company’s announcements. 13. Dividends Dividends payable to ordinary shareholders (except for the holders of treasury shares) attributable to the previous financial year are as follows: Six months ended 30th June 2026 2025 HK$M HK$M Interim dividend in respect of the previous financial year, approved and paid during the six months ended 30th June 2026, of HK$0.64 per ordinary share (paid during the six months ended 30th June 2025: HK$0.49 per ordinary share) 3,892 3,155 The Directors have declared a first interim dividend (“Interim Dividend”) of HK$ 0.26 per ordinary share for the year ending 31st December 2026. The Interim Dividend which totals HK$ 1,581 million will be paid on Thursday, 8th October 2026 to ordinary shareholders (except for the holders of treasury shares) registered at the close of business on the record date, being Friday, 4th September 2026. Ordinary shares of th ae Company will be traded ex-dividend as from Wednesday, 2nd September 2026. The Interim Dividend was proposed after the end of the reporting period and therefore has not been recognised as a liability as at 30th June 2026. As at 30 June 2026 , there were no treasury shares held by the Company (whether held or deposited with the Central Clearing and Settlement System, or otherwise). The register of members will be closed on Friday, 4th September 2026, during which day no transfer of shares will be effected. In order to qualify for entitlement to the Interim Dividend, all transfer forms accompanied by the relevant share certificates mu st be lodged with the Company’s share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong, for registration not later than 4:30 p.m. on Thursday, 3rd September 2026.
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26 Interim Results 2026 14. Corporate governance The Company complied with all the code provisions set out in the Corporate Governance Code contained in Part 2 of Appendix C1 to the Listing Rules throughout the reporting period covered by the interim report. The Company has adopted a code of conduct regarding securities transactions by Directors (the “Securities Code”) on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) contained in Appendix C3 to the Listing Rules. The Securities Code is available on the Company’s website. On specific enquiries made, all Directors of the Company have confirmed that, throughout their tenure during the reporting period covered by the interim report, they have complied with the required standard set out in the Model Code and the Securities Code regarding their securities transactions. The 2026 interim results have been reviewed by the Audit Committee of the Company and by the external auditors. Details on Corporate Governance can be found in the 2025 Annual Report and in the 2026 Interim Report. 15. Interim report The 2026 Interim Report containing all the information required by the Listing Rules will be published on the Stock Exchange’s website and the Company’s website (www.cathaypacific.com) on or before 21st August 2026. Printed copies will be dispatched to shareholders who have elected to receive printed copies on 24th August 2026.
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Interim Results 2026 27 Disclaimer This document may contain 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, 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, data quality, 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. As at the date of this announcement, the Directors of the Company are : Executive Directors: Guy Bradley (Chair), Ronald Lam, Lavinia Lau, Alexander McGowan, Rebecca Sharpe; Non-Executive Directors: Liu Tiexiang (Deputy Chair), Gordon McCallum, Martin Murray, Qu Guangji, Merlin Swire, Augustus Tang, Xiao Feng; Independent Non-Executive Directors: Bernard Chan, Lily Cheng, Christoph Mueller and Wang Xiao Bin . By Order of the Board Cathay Pacific Airways Limited Guy Bradley Chair Hong Kong, 5th August 2026 Website: www.cathaypacific.com References in this document to Hong Kong are to Hong Kong SAR, to Macau are to Macao SAR and to Taiwan are to the Taiwan region.