Doha / Hong Kong — Qatar Airways has decided to sell its entire 9.7% stake in Cathay Pacific Airways for about $897 million (HK$6.97 billion), marking the end of its eight-year investment in Hong Kong’s flagship carrier.
Cathay Pacific announced late Wednesday that the Doha-based airline had approached it with an offer to divest its holdings, which Cathay will repurchase through a buyback at HK$10.8374 per share — roughly a 4% discount to the stock’s previous closing price.
Qatar Airways originally purchased the stake in November 2017 from Kingboard Chemical Holdings, becoming Cathay’s third-largest shareholder after Swire Pacific and Air China. The move was Qatar’s first major investment in an Asian airline, aimed at expanding its global influence and increasing passenger flows through its Doha hub.
Strategic Portfolio Adjustment
Qatar Airways CEO Badr Mohammed Al-Meer said the sale aligns with the company’s disciplined portfolio strategy, following a strong period of financial performance.
“The exit reflects our focus on optimizing investments and positioning Qatar Airways for long-term growth,” Al-Meer noted.
The Middle Eastern carrier has a track record of strategic airline investments worldwide, holding stakes in IAG (parent of British Airways), LATAM Airlines, and Virgin Australia as part of its global connectivity strategy.
Cathay Pacific is paying about a 35% premium over the price Qatar Airways originally paid to reacquire the shares. The company said the deal will be funded through internal resources and existing credit lines.
Cathay Strengthens Ownership Structure
Cathay Pacific Chairman Patrick Healy said the buyback demonstrates “strong confidence in the company’s future.” The airline has launched a HK$100 billion, seven-year investment plan, focusing on fleet renewal, new cabin products, and upgraded lounges.
Upon completion, Swire Pacific’s ownership in Cathay will rise from 43.12% to 47.69%, while Air China’s shareholding will increase from 28.74% to 31.78%.
Despite the exit, both airlines confirmed they would continue their partnership under the oneworld Alliance, maintaining their code-sharing and cooperation agreements.