Qatar Airways to sell 9.57% stake in Cathy Pacific Airways

Cathay Pacific Airways is set to repurchase shares from Qatar Airways after the latter decided to exit its eight-year investment in the Hong Kong-based airline. As per a stock exchange filing, Cathay will acquire Qatar’s 9.57% stake for HK$6.97 billion ($896 million), subject to approval from at least 75% of its shareholders.

Qatar Airways had bought the stake in 2017 as part of a global airline investment strategy that included British Airways parent IAG SA and Latam Airlines Group SA, becoming Cathay’s third-largest shareholder. The buyback comes at roughly a 35% premium over Qatar’s original purchase price and will be financed using Cathay’s internal funds and existing credit facilities.

Patrick Healy, Cathay Group chairman, emphasized that the move reflects strong confidence in Cathay’s future and its commitment to grow sustainably while strengthening Hong Kong’s aviation hub status. Following the deal, Cathay’s public shareholding will drop to about 20.53%, but the Hong Kong Stock Exchange has granted a waiver for the reduced free float.

Qatar Airways cited portfolio optimization and long-term growth strategy as reasons for the sale, while maintaining partnership ties via the Oneworld alliance. Post-transaction, Swire Pacific’s stake rises to 47.69% and Air China’s to 31.78%.