Qatar Airways exits Cathay Pacific with $896 million share sale

Dubai: Qatar Airways will sell its entire 9.57% stake in Cathay Pacific Airways for $896 million, ending an eight-year partnership with the Hong Kong carrier.

Cathay Pacific said Wednesday it would repurchase the shares from Qatar Airways. The airline’s stock rose 4.2% in Hong Kong trading Thursday following the announcement. The deal still requires shareholder approval.

Cathay Group chairman Patrick Healy said the buyback shows “strong confidence in the future of the Cathay Group” and reinforces the company’s commitment to strengthening Hong Kong’s role as a global aviation hub.

Qatar Airways, owned by the government, did not issue its own statement but commented through Cathay Pacific’s release. CEO Badr Mohammed al-Meer said the sale reflected “a disciplined approach to portfolio management” after a period of record profits. He described it as part of a broader strategy to optimize the group’s investments for long-term growth.

Qatar Airways bought its Cathay Pacific stake in 2017 for about $662 million, at a time when the Hong Kong airline was cutting costs and struggling with losses. Cathay Pacific has since returned to profitability, reporting a $1.2 billion profit last fiscal year.

Qatar Airways has recovered strongly from the COVID-19 pandemic and a regional blockade that once restricted its routes. The airline earned $2.15 billion in profit last year and continues to hold stakes in International Airlines Group, LATAM Airlines, China Southern Airlines, Virgin Australia, and Airlink.