(HONG KONG) Cathay Pacific said it will buy back Qatar Airways’ entire 9.57% holding for HK$6.97 billion, ending the Gulf carrier’s eight-year run as the Hong Kong airline’s third-largest shareholder and reshaping the city’s flagship carrier’s ownership. Announced on November 5, 2025, the transaction values the shares at HK$10.8374 each, a price Cathay said represents roughly a 4% discount to its last close and a 35% premium on what Qatar paid in 2017. The deal requires approval from Cathay’s independent shareholders at an Extraordinary General Meeting, and the company plans to fund the stake repurchase using internal cash and existing credit lines.
The buyback will lift the stakes of Cathay’s two largest shareholders, tightening control at a time the carrier is investing heavily to rebuild and expand. Swire Pacific’s holding will rise from 43.12% to 47.69%, while Air China’s stake will increase from 28.74% to 31.78%. With Qatar Airways exiting, the move consolidates ownership under the two long-time strategic investors and reduces the number of Cathay Pacific shares in public hands, factors that analysts say can support the stock by lowering selling pressure.
Cathay Pacific identified the total transaction value as HK$6,969,273,804, or about US$896–897 million. The airline underscored that the stake repurchase fits with its broader plan to invest well over HK$100 billion over the coming years across fleet renewal, new cabin products, enhanced lounges, and digital platforms.
“The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub. Together with our investment of well over HK$100 billion into our fleet, cabin and lounge products, and digital leadership, we are firmly focused on sustainably growing our business to strengthen Hong Kong’s status as a world-class aviation hub and contribute to the prosperity of the wider Greater Bay Area. I would like to extend my gratitude to Qatar Airways for their unwavering support over the years, and I look forward to continuing our close partnership through the oneworld alliance,” said Patrick Healy, chairman of Cathay Group.
Qatar Airways’ departure closes a chapter that began in November 2017, when it acquired the 9.57% stake from Kingboard Chemical Holdings for about US$662 million. The Gulf carrier positioned the sale as part of a methodical rebalancing of its portfolio, citing record profitability and the need to align equity holdings with long-term growth goals.
“This agreement reflects the Qatar Airways Group’s disciplined approach to portfolio management and our commitment to delivering sustainable value to our shareholders. Following record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the Group for long-term growth. While adjusting our equity holdings, we look forward to continuing our cooperation with Cathay Pacific through the oneworld alliance and continuing to deliver the benefits of enhanced connectivity and choice to our passengers. Hong Kong remains an important market for Qatar Airways, and we remain fully committed to serving Hong Kong through our flights and codeshare agreements, providing travelers with a seamless, world-class experience that reflects the highest standards of quality, service, and innovation,” said Badr Mohammed Al-Meer, group chief executive officer of Qatar Airways.
Cathay Pacific stressed that the oneworld alliance partnership between the two carriers will continue, with ongoing cooperation on routes and services. That commitment is likely to be closely watched in Hong Kong, where airport traffic and connectivity are central to the city’s role as an Asian aviation hub overseen by the Hong Kong Civil Aviation Department. With the alliance ties intact, passengers should see little change in network breadth or codeshare offerings even as shareholding shifts behind the scenes.
For Cathay, the stake repurchase caps a period of rebuilding and investment after years of operational disruption. The company has mapped out more than HK$100 billion of spending over the next seven years to refresh aircraft, roll out updated cabins, and improve lounges, while pushing forward on technology to speed bookings, boarding, and baggage handling. While the airline did not link the buyback directly to any single project, it framed the transaction as part of a disciplined plan to grow sustainably and strengthen Hong Kong’s position as a global air hub. The financing package—using cash on hand and existing credit—means Cathay does not intend to raise fresh equity for the buyback.
The price mechanics underline the balance of incentives. At HK$10.8374 per share, Cathay is paying roughly 4% below its last closing price, securing a modest discount for taking a large block off the market in one go. For Qatar Airways, the price equates to about a 35% premium over what it paid in 2017, turning the stake into a profitable exit after eight years. That positive spread aligns with the Doha-based group’s description of “disciplined portfolio management,” a phrase it used to explain the sale as part of optimizing investments for long-term growth.
The ownership effects are concrete. Swire Pacific, Cathay’s historic anchor shareholder, will move just shy of half ownership at 47.69%, tightening its grip and sending a clear signal about the group’s long-term commitment. Air China, Cathay’s mainland partner, will climb to 31.78%, reinforcing ties across the boundary at a time Hong Kong officials continue to pitch the city as the core of the Greater Bay Area’s aviation system. With the public float reduced, Cathay’s share count falls, which can lift earnings per share if operating performance stays on track.
Market professionals see limited drama in Qatar’s decision to sell, even if the sums involved are large.
“I don’t think there’s anything special to read into it (buying back from Qatar). I think it’s more likely about Qatar Airways having their own cash needs,” said Kenny Ng Lai-yin, securities strategist at China Everbright Securities International.
He added that fewer shares on the market should help Cathay’s stock by cutting down the pool of potential sellers, especially in quieter trading periods. That view chimes with Cathay’s choice to use available liquidity and credit to complete the stake repurchase without tapping the market for new funding.
The corporate mechanics still require a formal nod. Cathay said the transaction will go to an Extraordinary General Meeting for approval by independent shareholders, a step designed to ensure the price and process are fair to minority investors. Once cleared, the shares acquired from Qatar would be canceled, finalizing the shift in the register and locking in the new percentage holdings for Swire and Air China. The airline did not indicate a timetable for the EGM beyond the announcement date but signaled readiness to proceed within existing financial resources.
For customers, the most visible takeaway is that Cathay Pacific and Qatar Airways intend to keep working together inside oneworld. That alliance framework allows member airlines to coordinate schedules, sell seats on one another’s flights, and share lounge access, preserving connectivity even when ownership changes. Both companies took care to stress continuity: Cathay pointed to ongoing cooperation, and Qatar’s chief executive described Hong Kong as an “important market” where the airline remains “fully committed” through flights and codeshares.
The strategic rationale on both sides is straightforward in the numbers. Cathay Pacific is spending HK$6.97 billion to retire stock at a discount to the market, consolidating ownership and reducing dilution as it pours more than HK$100 billion into aircraft and product upgrades. Qatar Airways, exiting at a price roughly a third above its 2017 entry point, harvests gains and retools its balance sheet while maintaining commercial ties. In the process, Cathay’s shareholder base becomes simpler, with two strategic investors—Swire Pacific and Air China—carrying increased influence, a structure that can align decision-making on fleet, network, and investment priorities.
The 2017 transaction that brought Qatar into Cathay’s register marked a notable cross-shareholding in global aviation. Buying from Kingboard Chemical Holdings for about US$662 million, Qatar gained its 9.57% foothold as it built out a network of stakes in international carriers. The exit now, set at HK$6,969,273,804, suggests both a tidy return and a choice to channel capital elsewhere, consistent with the airline’s statement about a “proactive strategy to optimize our investments” following strong financial performance. Cathay’s decision to step in as buyer signals a willingness to deploy capital to tighten control over its own share base rather than allow a new external investor to take Qatar’s place.
In valuation terms, the roughly 4% discount to the last close is a typical feature of large block transactions, recognizing the scale of the trade and the certainty of execution. The 35% premium to Qatar’s original purchase price highlights how timing and market cycles affect strategic stakes in an industry where earnings can swing with fuel prices, demand shifts, and regulatory changes. For Cathay, anchoring the deal in existing cash and credit reflects a balance sheet it says can support both investment and capital management, even as it lays out a multi-year plan to upgrade the customer experience from aircraft cabins to lounges and digital tools.
The question of what changes for employees or passengers has a simple answer for now: little, if anything, on day one. No job cuts or route changes were linked to the transaction, and both airlines emphasized continuity in their alliance cooperation. The practical effects are behind the scenes—fewer shares outstanding, a more concentrated ownership structure, and a clearer mandate for management as it pursues long-term growth and seeks to reinforce Hong Kong’s status as a world-class hub. Cathay’s framing connects the stake repurchase to that larger ambition, aligning with the city’s push to strengthen connectivity and capacity across the Greater Bay Area.
For investors, the mechanics and messaging converge on a theme of stability paired with selective risk-taking. Buying back stock at scale is a statement about confidence in future earnings, while lining up more than HK$100 billion in capital projects is a bet on sustained demand through the next cycle. Qatar Airways’ clean exit—at a profit—signals a willingness to recycle capital without severing commercial ties that benefit passengers through expanded networks. In global airline alliances, those dual paths—capital flexibility and operational cooperation—often coexist, and this deal fits that pattern.
As the Extraordinary General Meeting approaches, attention will turn to the fine print of the approval process and the timing of completion. Independent shareholders will weigh the HK$10.8374 per-share price against the benefits of a tighter share base and a clearer ownership map. If approved, the transaction would mark one of the most consequential capital moves for Cathay since Qatar’s entry in 2017, closing the loop on an eight-year investment and setting up the airline’s next phase under a more concentrated shareholder structure.
For Hong Kong, the implications are tied to Cathay’s role as the city’s primary long-haul carrier and a central pillar of its connections to the world. With traffic rebuilding and regional integration a policy priority, a better-capitalized, more focused airline can reinforce the city’s aviation ambitions. Cathay Pacific’s stake repurchase from Qatar Airways, backed by planned investments topping HK$100 billion, is framed by both sides as the kind of corporate housekeeping that clears the way for growth while keeping customer-facing partnerships intact.
What happens next is procedural: the EGM vote, the execution of the share cancellation, and the ongoing rollout of fleet and product upgrades that management has earmarked for the coming years. But the broader message is already clear in the numbers and the words of the principals. Cathay declared confidence in its future and in Hong Kong’s hub status. Qatar affirmed it is reallocating capital while “continuing our cooperation with Cathay Pacific through the oneworld alliance.” Between those two positions lies a pragmatic arrangement: one airline trims its equity ties while preserving commercial links, and the other consolidates ownership while keeping its network partnerships wide open.
This Article in a Nutshell
On November 5, 2025, Cathay Pacific agreed to repurchase Qatar Airways’ entire 9.57% stake for HK$6.97 billion (HK$10.8374 per share), financed using cash and existing credit lines and subject to independent shareholder approval at an EGM. The buyback raises Swire Pacific’s stake to 47.69% and Air China’s to 31.78%, reducing the public float and consolidating ownership. Cathay positions the move alongside plans to invest over HK$100 billion in fleet, cabin, lounge and digital upgrades; both carriers said their oneworld partnership will continue.
