Qatar Airways Sells Cathay Pacific Stake for $896 Million

BREAKING NEWS: Qatar Airways has just announced the sale of its 9.57% stake in Hong Kong’s Cathay Pacific Airways for a staggering $896 million. This move ends the Qatari carrier’s eight-year involvement with the airline, as confirmed in a stock market filing late Wednesday.

The sale has already impacted the market, with Cathay Pacific shares surging 4.2% on the Hong Kong Stock Exchange in early trading on Thursday. Under the terms of the agreement, Qatar Airways will divest all holdings, a significant shift in the airline’s portfolio.

Cathay Pacific’s chairman, Patrick Healy, emphasized the buyback’s importance, stating, “This reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub.” This statement highlights the strategic implications of the sale for both airlines.

Badr Mohammed al-Meer, CEO of Cathay Pacific, remarked that the decision aligns with the airline’s “disciplined approach to portfolio management” aimed at delivering sustainable value to shareholders. He added that this proactive strategy comes after a period of record profitability, with Cathay Pacific reporting a $1.2 billion profit in the last fiscal year.

Qatar Airways, which operates from Hamad International Airport in Doha, has not publicly commented on the sale. However, this move marks a significant turning point for the airline, which had acquired its stake in Cathay Pacific back in 2017 for approximately $662 million. At that time, Cathay Pacific was struggling with financial losses and layoffs due to fierce competition.

This latest development comes at a crucial time for Qatar Airways, which recently reported a remarkable $2.15 billion profit for its last fiscal year, bouncing back from challenges posed by a prolonged boycott from four Arab nations and the impacts of the coronavirus pandemic.

As Qatar Airways divests from Cathay Pacific, industry analysts are closely monitoring the implications for both airlines and the broader aviation market. The sale is subject to shareholder approval, which could further influence Cathay Pacific’s strategy moving forward.

This urgent update not only marks a pivotal moment for Qatar Airways and Cathay Pacific but also signals shifts in the global aviation landscape, particularly between East and West travel routes. Stakeholders and investors alike will be watching for the next steps as these developments unfold.

Stay tuned for more updates on this evolving story.