Cathay Pacific Airways’ net profit climbed by 9.5 per cent to HK$10.82 billion (US$1.39 billion) in 2025, driven by increased capacity and robust cargo demand, as the chief of the Hong Kong flag carrier warned of disruptions due to conflict in the Middle East.

Cathay Group chairman Patrick Healy said on Wednesday the results marked the airline’s third consecutive year of growth. But he cautioned that global geopolitical tensions were unsettling businesses and pushing up fuel prices.

Hong Kong is feeling the impact of ongoing tensions in the Middle East, as joint US-Israel strikes on Iran have disrupted air travel, oil exports and supply chains, prompting the airline group to cancel all flights to Dubai and Riyadh for March.

In response to higher crude oil prices, Hong Kong Airlines on Thursday became the first local carrier to announce a fuel surcharge increase of up to 35.2 per cent, while Cathay Pacific and its budget arm HK Express have yet to indicate whether they will follow suit.

“The prevailing global geopolitical environment is volatile, causing unexpected shifts in passenger and cargo traffic flows as well as jet fuel prices,” Healy said. “Ongoing supply chain disruptions and cost inflation continue to impact delivery of new aircraft, cabin products and parts.

“However, we have built a strong foundation which has made Cathay resilient, efficient and adaptable. This has put us in the best possible position to withstand current market turbulence, and we will remain agile as we continue to face external challenges.”