Qatar Airways Sells Entire Cathay Pacific Stake for $897 Million – A Strategic Shift in Global Aviation

Qatar Airways has sold its entire 9.7% stake in Cathay Pacific for $897 million, marking a full exit after eight years. The deal underscores shifting investment priorities as both airlines strengthen their strategic positions amid the global aviation recovery.

Qatar Airways’ Full Exit from Cathay Pacific Marks the End of an Eight-Year Partnership

Doha-based Qatar Airways has sold its entire 9.7% stake in Cathay Pacific Airways for approximately $897 million (HK$6.97 billion), ending its eight-year association with Hong Kong’s flagship carrier.

Cathay Pacific announced late Wednesday that Qatar Airways approached it with an offer to sell its entire holding. The airline agreed to repurchase the stake via a buyback priced at HK$10.8374 per share, about a 4% discount to the previous market close.

This transaction marks Qatar Airways’ complete withdrawal from Cathay Pacific, following its initial purchase of the stake from Kingboard Chemical Holdings in November 2017. At that time, Qatar became Cathay’s third-largest shareholder, behind Swire Pacific and Air China.

The investment, Qatar Airways’ first major stake in an Asian carrier, was originally aimed at expanding its global footprint and increasing connectivity through its Doha hub.

A $897 Million Deal Driven by Portfolio Strategy and Market Timing

According to Reuters, the Hong Kong carrier will pay roughly a 35% premium over what Qatar Airways paid in 2017, reflecting a profitable exit for the Middle Eastern airline even as it shifts its strategic focus.

Qatar Airways’ Group CEO Badr Mohammed Al-Meer said the move was consistent with the company’s long-term investment philosophy:

“This transaction reflects our disciplined approach to portfolio management. Following a period of strong performance, we believe now is the right time to optimize our investments and position the company for sustainable long-term growth.”

The sale illustrates Qatar Airways’ pivot toward higher-control, high-return investments, rather than maintaining minority positions in international carriers — a move analysts interpret as part of the airline’s strategic realignment.

Cathay Pacific Strengthens Ownership and Confidence in Its Future

For Cathay Pacific, the buyback is more than just a financial transaction; it’s a signal of confidence in the company’s recovery and long-term vision.

Cathay’s Chairman Patrick Healy said:

“This share buyback demonstrates our strong confidence in Cathay Pacific’s future. It is a strategic decision that strengthens our ownership structure, optimizes our capital base, and positions us well for the next phase of growth.”

The airline said it would fund the repurchase through internal resources and existing credit facilities, without raising new capital.

Once completed, Swire Pacific’s stake in Cathay will rise from 43.12% to 47.69%, while Air China’s holding will increase from 28.74% to 31.78%.

The restructuring will give Cathay a more concentrated ownership base, enabling greater strategic autonomy and stability as it executes its long-term expansion plans.

Strategic Context: A Stronger Cathay in a Rebounding Aviation Market

The deal comes amid a robust post-pandemic recovery in global aviation. After years of losses due to Hong Kong’s strict border policies and pandemic restrictions, Cathay Pacific has returned to solid footing.

In the first nine months of 2025, the airline reported a 30% year-on-year increase in both passenger and cargo revenue, driven by a rebound in international travel and logistics.

Cathay is currently implementing a HK$100 billion (US$12.8 billion) investment plan spanning seven years, focusing on:

Fleet renewal with next-generation aircraft

Upgraded cabin products and lounges

Enhancements to its Hong Kong operational hub

Analysts view the buyback as a vote of confidence — a sign that Cathay now possesses the financial strength to self-fund strategic investments while maintaining shareholder value.

Qatar Airways’ Global Investment Realignment

For Qatar Airways, the sale reflects an evolution in its global investment strategy. Over the past decade, the Gulf carrier has acquired strategic stakes in major airlines, including:

IAG (parent company of British Airways)

LATAM Airlines Group in South America

Virgin Australia

These moves helped Qatar build a diverse global network and enhance its position within the oneworld Alliance, allowing the airline to compete more effectively with regional rivals Emirates and Etihad Airways.

However, analysts note that Qatar Airways is now shifting toward strategic consolidation — prioritizing investments that offer operational control or direct synergies rather than minority holdings.

Despite its exit, the airline emphasized that it will continue its partnership with Cathay Pacific through the oneworld Alliance, maintaining code-sharing arrangements and reciprocal loyalty benefits.

Market Reaction: Cathay Shares Rise as Investors Welcome the Move

Cathay Pacific’s shares rose 1.2% in early trading on the Hong Kong Stock Exchange following the announcement, reflecting investor optimism about the airline’s financial flexibility and renewed confidence in its growth prospects.

However, some analysts cautioned that the buyback could temporarily pressure cash reserves, even though Cathay’s balance sheet appears strong.

Kenny Ng, analyst at Everbright Securities, commented:

“Cathay’s decision to finance the deal internally demonstrates that its financial recovery is solid. The move reinforces investor confidence and sets the stage for long-term value creation.”

Broader Impact: A Shift in Asia-Pacific Aviation Dynamics

The sale also reshapes the ownership landscape in the Asia-Pacific aviation sector:

Cathay Pacific consolidates its control and strengthens its leadership position in Hong Kong and East Asia.

Qatar Airways reallocates capital to markets with faster growth potential — such as South Asia, Africa, and the Middle East.

Swire Pacific and Air China deepen their influence over Cathay’s future direction, creating a more unified strategic front.

Industry observers say the transaction underscores a broader trend of post-pandemic consolidation, where airlines focus on financial resilience and strategic clarity rather than aggressive global expansion.

Conclusion

Qatar Airways’ decision to sell its entire $897 million stake in Cathay Pacific is more than a financial transaction — it marks a strategic inflection point for both airlines.

For Cathay Pacific, it’s an affirmation of confidence, signaling renewed financial strength and control over its long-term vision.
For Qatar Airways, the sale represents a disciplined shift toward optimizing its global portfolio and focusing on growth areas where it holds greater strategic leverage.

As the aviation industry enters a new phase of post-pandemic realignment, this deal stands as a testament to how leading carriers are redefining partnerships, capital structures, and strategic priorities to secure their place in an increasingly competitive global sky.

FAQs

1. Why did Qatar Airways decide to sell its stake in Cathay Pacific?
Qatar Airways stated the sale was part of its disciplined portfolio strategy, allowing it to optimize returns and focus on core, high-control investments aligned with its long-term growth objectives.

2. How will Cathay Pacific fund the buyback?
Cathay Pacific said the purchase would be financed using internal cash and existing credit lines, without raising new debt or issuing additional equity.

3. What changes after the buyback?
Post-transaction, Swire Pacific’s ownership increases to 47.69%, Air China’s to 31.78%, consolidating Cathay’s ownership and reducing external shareholder influence.

4. Will the partnership between Qatar Airways and Cathay Pacific continue?
Yes. Both airlines confirmed their continued collaboration through the oneworld Alliance, maintaining shared routes and frequent-flyer benefits.