Qatar Airways Exits Cathay Pacific with $897 Million Stake Sale
Cathay repurchases 9.7% stake as Gulf carrier reshapes global investment strategy
State-owned Qatar Airways has sold its entire 9.7% stake in Cathay Pacific Airways for about $897 million (HK$6.97 billion), marking its complete exit from Hong Kong’s flagship carrier after eight years.
Cathay Pacific confirmed on Wednesday that the Doha-based airline approached it with the proposal to sell its full stake. The Hong Kong carrier agreed to buy back the shares at HK$10.8374 each, representing a 4% discount to the previous day’s closing price.
The sale ends Qatar Airways’ involvement with Cathay, which began in November 2017 when it became the airline’s third-largest shareholder, after Swire Pacific and Air China. According to Cathay, the buyback represents a 35% premium over the original price Qatar paid. The airline said it would fund the transaction through internal cash reserves and existing credit lines.
Analysts view move as strategic
Market analysts said the decision likely reflects Qatar Airways’ liquidity needs rather than issues with Cathay. “It’s more about Qatar Airways managing its cash flow,” said Kenny Ng Lai-yin, a securities strategist at China Everbright Securities International.
He added that the deal should support Cathay’s share price by reducing the number of available shares and easing selling pressure. On Thursday, Cathay’s stock rose 4.8%, while Air China and Swire Pacific gained 4% and 1%, respectively.
Based at Hong Kong International Airport, the world’s busiest cargo hub, Cathay Pacific has benefited from the growth of e-commerce shipments from mainland China.
Exit aligns with Qatar’s global investment focus
Qatar Airways said the exit aligns with its long-term portfolio strategy, allowing it to optimize its investments and focus on future growth. CEO Badr Mohammed Al-Meer said the decision follows a period of strong performance and reflects the airline’s “disciplined investment approach.”
Cathay was Qatar Airways’ first major investment in Asia, intended to expand its global network and strengthen connections through Doha. However, the airline never held board seats at Cathay and had limited influence over management decisions.
Before the investment, both airlines operated a codeshare route between Hong Kong and Doha (2014–2016), later discontinued for commercial reasons.
Qatar Airways continues to hold stakes in several leading global carriers, including British Airways parent IAG, LATAM Airlines, and Virgin Australia.
Cathay focuses on recovery and growth
Cathay Pacific Chairman Patrick Healy said the company’s decision to repurchase shares reflects strong confidence in its future. The airline recently launched a HK$100 billion investment plan to upgrade its fleet, cabins, and airport lounges over the next seven years.
After suffering heavy losses during the COVID-19 pandemic, Cathay’s recovery has gathered momentum. Together with its low-cost arm HK Express, the carrier reported a 20% year-on-year rise in passengers in September.
NEWS DESK
PRESS UPDATE