Qatar Airways is selling its entire 9.7% stake in Cathay Pacific back to the Hong Kong carrier for approximately $897 million (HK$6.97 billion), concluding an eight-year investment in the airline. Cathay Pacific announced it would repurchase the shareholding, which was first acquired by the Doha-based airline in November 2017.
Details of the Share Buyback
Cathay Pacific confirmed it will buy back the shares at a price of HK$10.8374 each. This figure represents a 4% discount to the airline’s last closing share price but is a significant 35% premium over the price Qatar Airways originally paid for the holding. The Hong Kong carrier stated it would fund the transaction through a combination of internal resources and its existing credit facilities.
The deal will result in a consolidation of ownership among Cathay’s primary shareholders. Once the buyback is approved, Swire Pacific’s stake will increase from 43.12% to 47.69%, while Air China’s shareholding will rise from 28.74% to 31.78%.
Market Reaction and Strategic Rationale
The market responded positively to the news, with Cathay Pacific’s shares climbing 4.8% on Thursday. The stock of its major shareholders also saw gains, with Air China up 4% and Swire Pacific rising by more than 1%. Kenny Ng Lai-yin, a securities strategist at China Everbright Securities International, suggested the sale was likely prompted by Qatar Airways’ own financial needs. He noted the deal should be good for Cathay’s stock price, as fewer freely traded shares would reduce potential selling pressure.
Badr Mohammed Al-Meer, CEO of Qatar Airways, described the exit as a reflection of the company’s “disciplined portfolio strategy” aimed at optimising investments for long-term growth. The move is consistent with the airline’s approach of taking strategic stakes in global carriers, which include British Airways parent IAG and LATAM. This focus on strategic financial management is echoed in other sectors of the nation’s economy, as seen when the QFC partners with Doha Bank to accelerate fintech growth in Qatar.
Future Outlook for Cathay Pacific
For Cathay Pacific, the buyback is a signal of self-assurance. Chairman Patrick Healy said the decision reflected “strong” confidence in the company’s future. The airline is in a recovery phase following the pandemic and has outlined a HK$100 billion investment plan over seven years to renew its fleet and upgrade cabin products and lounges. The airline and its subsidiary HK Express carried 20% more passengers in September compared to the previous year.
The original investment in 2017 was Qatar Airways’ first in an Asian airline, intended to expand its global influence and drive traffic through its Doha hub, located in a city that continues to develop as a major destination with events like the Qatar Boat Show 2025. Despite the sale, both airlines have confirmed they will continue their partnership through the oneworld Alliance.
