Cathay Pacific Airways expects a significant increase in profits in the first half of the year as strong demand for passenger and freight transportation offsets the impact of oil prices.

Cathay Pacific Airways expects a significant increase in profits in the first half of the year, as strong passenger and cargo demand helped the company absorb the oil price impact caused by the US-Iran war. Cathay Pacific Airways announced on Wednesday on the Hong Kong Stock Exchange that it expects first-half profits to be around HK$6 to HK$6.5 billion, higher than the approximately HK$3.7 billion in the same period last year. The stake in Air China held by Cathay Pacific Airways has been further diluted, with its ownership decreasing from 15.05% to 12.85%, generating HK$1.4 billion in income that also boosted its performance. After air travel in the Middle East was disrupted by the Iran war, passengers switched to alternative routes and airlines, with Cathay Pacific Airways being one of the biggest beneficiaries. Like other airlines, Cathay Pacific Airways also faced pressure from the surge in aviation fuel costs due to the Iran conflict. The company has hedged 30% of its aviation fuel demand and imposed fuel surcharges on passenger and cargo customers, which helped alleviate the impact of oil prices.