What impact did Middle East travel avoidance have on Cathay Pacific?

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Middle East Travel Avoidance Boosted Cathay Pacific's First-Half Profit

Cathay Pacific experienced a significant increase in net profit for the first half of the year, with passenger demand shifting away from the Middle East playing a crucial role in offsetting rising fuel costs. This surge in demand, particularly for transit traffic through Hong Kong, contributed to the airline's improved financial performance despite a near doubling of fuel expenses.
Increased Passenger Revenue Driven by Transit Traffic

The airline reported a 26.3 per cent rise in passenger revenue, reaching HK$43.2 billion in the first six months. This growth was primarily fuelled by robust underlying travel demand. Critically, this was amplified by an increase in transit passengers choosing to route through Hong Kong. Travellers actively sought alternative hubs during the second quarter, opting to bypass routes affected by the Middle East situation.
Net Profit Surged Despite Doubled Fuel Costs

For the first half of the year, Cathay Pacific announced a net profit of HK$6.2 billion, a 71 per cent increase compared to the previous year. This substantial profit growth occurred even as the airline contended with nearly doubled fuel costs between the first and second quarters, a direct consequence of the Iran war. The airline had implemented multiple fuel surcharge increases since the conflict began in February.
Overall Revenue Shows Strong Growth

Overall revenue for Cathay Pacific saw a significant increase of 25.3 per cent year-on-year, reaching HK$68 billion in the first half. This financial uplift was attributed to a combination of factors, including ongoing demand for Cathay Pacific and Cathay Cargo services, improved performance from HK Express, and stronger contributions from associated companies. The resilience of the business, built in recent years, allowed the airline to achieve this performance despite challenging external circumstances.

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What impact did Middle East travel avoidance have on Cathay Pacific?

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