As Hong Kong reopened its borders at the end of last year, Cathay has gradually increased flights amid strong travel demand with its fortunes helped by elevated ticket prices.

Cathay chairman Patrick Healy said in a statement the results showed the airline was “on the right track” as it rebuilt.

Healy added Cathay planned to buy back 50 per cent of the preference shares the government acquired as part of a recapitalisation package extended in 2020 before the end of the year at a redemption price of more than HK$9.75 billion.

The rest would be bought back by the end of July next year, Healy said, adding “subject to completion of the proposed capital reduction and its business conditions at the relevant time”.

In June, Cathay paid the government HK$1.5 billion in deferred dividend payments owed on HK$19.5 billion in preference shares acquired as part of the recapitalisation package.

The company earlier said it intended to pay all future dividends as they fell due and, subject to market conditions, buy back the preference shares over the next 12 months.

It also reported a 135 per cent increase in revenue to HK$43.5 billion on Wednesday, compared with HK$18.5 billion in the same period last year.

Cathay attributed the rebound in the first half to strong passenger flight business, which increased to HK$27.5 billion compared with HK$2.08 billion in the same period last year. The airline carried 7.8 million passengers in the first half, up 2,200 per cent compared with the same period last year.

Meanwhile, cargo revenue fell 10 per cent, to HK$12.4 billion, compared with the first half in 2022, which Cathay said reflected “weaker global market for air cargo”.

The company last month said it would reward staff members who stuck with it throughout the turbulent times by giving them an extra two to six weeks’ salary in September.

Details of a profit-sharing scheme set to be introduced for 2023 to 2025 are expected to be announced this month.

The Cathay group, which includes budget airline HK Express, carried 1.54 million passengers in June, a 931.9 per cent increase from the year before.

In March, when the company released its annual results for 2022, Cathay said it was operating at 50 per cent of pre-pandemic capacity and would reach 70 per cent by the end of December. It aimed to return to full capacity by the end of 2024.

Meanwhile, regional rival Singapore Airlines Group said last month it was on track to reach about 90 per cent of pre-pandemic capacity by March next year.

In May, the city state’s flag carrier posted a record annual profit of S$2.16 billion (US$1.63 billion) for the 12 months ending March 31, and said all eligible employees would receive a profit-sharing bonus of up to eight months’ pay.