Qatar Airways Exits Cathay Pacific Stake in $896–897 Million Buy-Back Deal

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What’s the Deal

Qatar Airways, the Doha-based state-owned carrier, is selling its entire 9.57 % stake in Cathay Pacific Airways in a share buy-back valued at approximately US$896–897 million (HK$6.97 billion).

The transaction was announced by Cathay Pacific in a stock-exchange filing on 5 November 2025 and reflects Qatar’s full exit from an eight-year partnership dating back to 2017.

Cathay will purchase the shares at HK$10.8374 each, which represents roughly a 4 % discount to its last closing price.

Why It Matters

For Cathay Pacific:

• The buy-back reduces the public floating share count and strengthens earnings per share, potentially improving share-price stability.

• It re-consolidates ownership among major shareholders: after completion, Swire Pacific’s stake will rise to approx. 47.69 % and Air China’s to around 31.78 % from 28.74 %.

• The move comes as Cathay posted a ~US$1.2 billion profit in its last fiscal year following pandemic losses — the buy-back is presented as a signal of confidence in Cathay’s future and Hong Kong’s aviation hub status.

For Qatar Airways:

• This divestment aligns with Qatar’s strategy of portfolio optimisation — the airline indicated it is focusing resources on core operations and other investments.

• Qatar Airways originally acquired the stake in November 2017 for about US$662 million, so the buy-back price indicates a ~35 % premium relative to its original purchase price.

Broader implications:

• The transaction underlines how airline equity stakes are being used as strategic investment tools rather than long-term operating partnerships — especially when minority holdings do not afford control.

• Aviation alliances and stakeholder dynamics: Qatar and Cathay remain members of the Oneworld Alliance; the exit may shift alliance-related influence, but both carriers say their alliance partnership continues.

Key Facts at a Glance

• Seller: Qatar Airways — 9.57 % stake in Cathay Pacific

• Buyer: Cathay Pacific (via share buy-back)

• Transaction value: ~US$896–897 million (HK$6.97 billion)

• Share price: HK$10.8374 per share (≈ 4 % discount to last closing)

• Announced: 5 November 2025 (Hong Kong filing)

• Original stake purchase: ~US$662 million in 2017 by Qatar Airways

What to Watch Next

• Shareholder approval: The buy-back requires approval by independent shareholders (at least ¾ of independent votes) and will be subject to Hong Kong regulatory processes.

• Impact on share price & float: Reduced float may reduce volatility, but the actual effect depends on trading volumes and investor sentiment.

• Cathay’s investment plan: With ownership consolidated, Cathay has announced plans for ~HK$100 billion in investment over seven years in fleet renewal, cabin upgrades and lounges — monitor how this sale supports that strategy.

• Qatar’s future investment strategy: Will Qatar re-allocate capital to other carriers or aircraft purchases? This may indicate where global aviation investment trends head next.

• Alliance & partnership dynamics: With Qatar’s exit, how will Cathay and other Oneworld members adjust route partnerships, codeshares and alliance leverage?