Hong Kong-based Cathay Pacific is soaring back into action after the pandemic, taking a significant step in its rebuild by purchasing back 50% of the government shares that were part of the airline’s restructuring in 2020.
This move marks a major milestone for Cathay Pacific, demonstrating its confidence in its future and commitment to remaining Hong Kong’s leading carrier. The airline has also signaled its intention to buy the remaining 50% of government shares by the end of next year, further solidifying its independence.
Strong Financial Performance
The airline’s strong financial performance has enabled this share buyback. Cathay Pacific has paid HK $1.97 million ($250,000) in dividends to the Hong Kong government since the 2020 recapitalization, and the purchase of 50% of the shares signifies their financial stability.
Cathay Pacific’s Group Chief Executive, Ronald Lam, expressed gratitude to both the Hong Kong government and shareholders for their continued support. He emphasized that the government’s investment was crucial to upholding Hong Kong’s status as an international aviation hub during the pandemic.
Lam also stated that the airline remains committed to becoming one of the world’s leading service brands and regaining its position as the pride of Hong Kong.
Expanding Network and Services
With the world reopening and travel demand increasing, Cathay Pacific is strategically expanding its network and services. The airline has announced several exciting new routes for 2024, including:
- Christchurch, New Zealand (resuming December 15th, 2023)
- Chennai and Colombo (resuming February 1st, 2024)
- Barcelona (resuming March 31st, 2024)
Making Travel More Accessible
To further enhance accessibility and encourage travel, Cathay Pacific recently partnered with Klarna to offer flexible payment options in six European countries. This initiative allows European travelers to purchase air tickets on payment plans, making travel more affordable and convenient.
Cathay Pacific’s share buyback and network expansion are positive signals for the airline’s future. As travel demand continues to rise, Cathay Pacific is well-positioned to regain its pre-pandemic prominence and solidify its position as a leading international carrier.
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