Cathay Pacific confirmed on 6 January that state-owned partner Air China has sold a 1.61 % stake for HK$1.32 billion (US$170 million). The share sale reduces Air China’s holding to 27.11 %, although this will climb back to 29.98 % once Cathay completes a planned buy-back of shares currently held by Qatar Airways.
Chief Executive Officer Ronald Lam told reporters the divestment was “tactical, not strategic”, and that Air China remains a long-term investor. Swire Pacific will stay majority shareholder with 47.65 % after the buy-back. Lam added that Cathay expects 2025 earnings to surpass the HK$9.89 billion profit booked for 2024 as capacity rebuilds.
![Air China trims Cathay Pacific stake in HK$1.32 bn deal—CEO calls move ‘tactical’]()
The announcement coincided with the airline’s 80th-anniversary celebrations, during which Cathay unveiled the return of its classic green-and-white ‘lettuce leaf sandwich’ livery on two Airbus A350s. Although no brand-new destinations were announced, the carrier plans to lift frequencies on existing long-haul routes—good news for corporate travel planners reliant on Hong Kong’s hub connectivity.
Industry analysts view the deal as housekeeping ahead of Cathay’s bid to resume regular dividends in 2026. For mobility professionals, the takeaway is stability: Air China’s continued presence preserves the cross-equity alliance that underpins key mainland-Hong Kong codeshares, while Cathay’s stronger balance-sheet should translate into more consistent schedules and premium-cabin availability.
Chief Executive Officer Ronald Lam told reporters the divestment was “tactical, not strategic”, and that Air China remains a long-term investor. Swire Pacific will stay majority shareholder with 47.65 % after the buy-back. Lam added that Cathay expects 2025 earnings to surpass the HK$9.89 billion profit booked for 2024 as capacity rebuilds.
The announcement coincided with the airline’s 80th-anniversary celebrations, during which Cathay unveiled the return of its classic green-and-white ‘lettuce leaf sandwich’ livery on two Airbus A350s. Although no brand-new destinations were announced, the carrier plans to lift frequencies on existing long-haul routes—good news for corporate travel planners reliant on Hong Kong’s hub connectivity.
Industry analysts view the deal as housekeeping ahead of Cathay’s bid to resume regular dividends in 2026. For mobility professionals, the takeaway is stability: Air China’s continued presence preserves the cross-equity alliance that underpins key mainland-Hong Kong codeshares, while Cathay’s stronger balance-sheet should translate into more consistent schedules and premium-cabin availability.
Source: Reuters
