Cathay Pacific Airways on Wednesday reported its best first-half profit since 2010 as strong passenger and cargo demand and a one-time gain from its Air China stake offset higher fuel prices.

Hong Kong flagship carrier's net profit rose 71 percent to HK$6.24 billion for the six months ending on June 30, the second-highest in its history for the period.

The airline last month forecast a first-half profit in the range of HK$6 billion to HK$6.5 billion.

"Looking ahead, summer travel demand going into the third quarter is looking strong," Cathay Chairman Guy Bradley said in a statement.

"We remain cautiously optimistic for the rest of the year, subject to developments in the Middle East situation and other macroeconomic factors."

Cathay's revenue climbed 25.3 percent to HK$68 billion, while its profit margin grew to 9.2 percent from 6.7 percent.

Cathay's strong results come against a challenging cost backdrop as the broader aviation industry grapples with a spike in jet fuel prices due to the Iran war.

Jet fuel prices are forecast to average US$152 per barrel this year, nearly 70 percent above 2025 levels, according to the International Air Transport Association.

Cathay said its jet fuel costs had almost doubled in the second quarter relative to the first quarter, though the increase was partially offset by fuel surcharges.

"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," Bradley said. (Reuters)


Edited by Tony Sabine