Qatar Airways Sells Entire Cathay Pacific Stake for $897 Million

Doha/Hong Kong: Qatar Airways has sold its entire 9.7 per cent stake in Cathay Pacific Airways for about $897 million (HK$6.97 billion), marking a full exit from Hong Kong’s flagship airline after eight years of partnership.

Cathay Pacific confirmed late on Wednesday that the Doha-based carrier had approached the company with an offer to sell its entire shareholding. The Hong Kong airline agreed to repurchase the shares at HK$10.8374 per share, representing roughly a 4 per cent discount to the stock’s last closing price.

Qatar Airways first acquired the stake in November 2017 from Kingboard Chemical Holdings, becoming Cathay’s third-largest shareholder after Swire Pacific and Air China. The move at the time was seen as a strategic investment to strengthen Qatar Airways’ presence in Asia and enhance global traffic through its Doha hub.

Announcing the sale, Qatar Airways CEO Badr Mohammed Al-Meer said the decision was part of the company’s disciplined portfolio management strategy. “This divestment follows a period of strong performance and aligns with our focus on optimizing investments for long-term growth,” he said.

Over the past decade, the Gulf carrier has expanded its global footprint through strategic airline investments, including stakes in British Airways parent IAG, South American carrier LATAM, and Virgin Australia.

Cathay Pacific said it would finance the buyback through internal cash and existing credit lines. The airline is paying a 35 per cent premium over the price Qatar Airways originally paid for the stake in 2017.

Patrick Healy, Chairman of Cathay Pacific, said the move reflects strong confidence in the airline’s future. “This buyback demonstrates our commitment to long-term value creation,” he noted. Cathay has committed HK$100 billion in investments over the next seven years, focusing on fleet renewal, upgraded cabin products, and enhanced lounges.

Once the transaction is complete, Swire Pacific’s ownership in Cathay Pacific will rise from 43.12 per cent to 47.69 per cent, while Air China’s stake will increase from 28.74 per cent to 31.78 per cent.

Both airlines confirmed that their partnership under the oneworld Alliance would continue despite Qatar Airways’ exit as a shareholder.