2024 Interim Results

At Swire Properties, underlying profit attributable to shareholders in the first half of 2024 was HK$3,857 million, a slight decrease of 1% from HK$3,901 million recorded in the first half of 2023, which included the sale of car parking spaces at the residential development Taikoo Shing in Hong Kong. Recurring underlying profit for the period under review was HK$3,570 million, compared with HK$3,892 million in the first half of 2023 – a decrease of HK$322 million. This mainly reflected higher net finance charges and the reduction in office rental income from Hong Kong, partly due to rental loss from office disposals in 2023.

Swire Properties' retail portfolio in Hong Kong was impacted by macro-economic uncertainties. Despite the headwinds, its shopping malls remain the preferred choice for major retail tenants, with all of them almost fully let. The recovery of the Hong Kong office market has proven slower than expected in the wake of the pandemic. However, Swire Properties' office portfolio has consistently outperformed the relevant submarkets in terms of occupancy.

In the Chinese Mainland, retail sales growth has normalised after achieving record-high retail sales in the first half of 2023, following the lifting of pandemic-related restrictions. Foot traffic in Swire Properties' malls has remained steady, with retail sales ahead of pre-pandemic levels.

Swire Properties has continued to make significant progress in realising opportunities from its HK$100 billion investment plan, 65% of which has now been committed. Under the plan, HK$30 billion has been allocated to future expansion at Taikoo Place and Pacific Place in Hong Kong. In the Chinese Mainland, where HK$50 billion has been earmarked, Swire Properties is making good progress with several new investments in different cities, establishing a network of 11 major retail-led, commercial developments in six Chinese Mainland cities by 2027. Furthermore, HK$20 billion is being invested in residential trading projects in Hong Kong, the Chinese Mainland and South East Asia.

Airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HK$3,846 million in the first half of 2024, compared with a first half profit in 2023 of HK$4,763 million. The year-on-year reduction is principally attributable to the normalisation of ticket prices. Meanwhile, the results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$342 million, compared with a loss of HK$2,632 million in the first six months of last year.

Passenger revenue increased by 20.0% to HK$30,017 million compared with the same period in 2023. Passenger flight capacity, measured in available seat kilometres, increased by 42.7%, while traffic, measured in revenue passenger kilometres, increased by 34.9%. Cathay Cargo's revenue in the first half of 2024 increased by 1.5% to HK$10,902 million compared with the same period in 2023. Cargo flight capacity, measured in available cargo tonne kilometres, increased by 11.4%. Traffic, measured in cargo revenue tonne kilometres, increased by 4.6%.

The Cathay group maintains its focus on growing its business in a consistent and sustainable way. Passenger flights reached 80% of pre-pandemic levels within the second quarter as planned. As it enters the final stretch of its rebuilding journey, the Cathay group is on track to reach 100% of its pre-pandemic flights within the first quarter of 2025, and is increasing its headcount by 5,000 to a total of 29,000 people by the end of this year to support this pace of growth.

The Cathay group has also committed more than HK$100 billion in investments over the next seven years, encompassing its fleet, cabin products, lounges, and digital and sustainability leadership as it sets its sights on growing for its customers, its people and its home, Hong Kong.