Qatar Airways, Nov 6: Airline Offloads Cathay Pacific Shares Worth $896 Million

On 6 November 2025, we learned that Qatar Airways would offload its holdings in Cathay Pacific Airways. The sale is valued at around US$896 million (HK$6.97 billion) and represents about 9.57% of Cathay’s total issued shares. This marks Qatar Airways’ full exit from a stake it first acquired in 2017.

Why is this move important? We believe it draws attention for three reasons: one, it shows how major airlines are reshaping their investment strategies; two, it affects the balance of ownership at one of Asia’s major carriers; and three, for travelers and shareholders alike, it signals changing dynamics in global aviation.

Background: Qatar Airways & Cathay Pacific Partnership

Qatar Airways bought its stake in Cathay Pacific back in 2017, at a time when Cathay was under financial pressure. The Gulf carrier saw the investment as a way to boost its global presence and enhance flows through its Doha hub. The deal also aligned with membership in the oneworld Alliance, both airlines are members, which enabled cooperation across routes and codeshares.

For eight years, the stake gave Qatar Airways a financial interest in Hong Kong’s flagship carrier, even though it did not hold board control. The partnership thus remained passive, more financial than operational.

Details of the Share Sale

Here are the key figures:

• Qatar Airways will sell 643.07 million shares, which represent about 9.57% of Cathay Pacific’s issued shares.
• The agreed price is HK$10.8374 per share, which equates to approximately US$896 million.
• The deal is set up as a share buy-back by Cathay Pacific itself, subject to approval by independent shareholders.
• Following the transaction, major shareholders like Swire Pacific and Air China will increase their holdings to ~47.69% and ~31.78% respectively.

Market reaction was immediate: Cathay’s share price jumped by about 4-5% when the news broke.

Why Qatar Airways Sold the Shares

We can identify several possible reasons behind this move:

• Portfolio optimisation: Qatar Airways stated the sale was part of a disciplined approach to managing its investment portfolio and positioning for long-term growth.
• Better use of capital: After posting a strong profit in recent times, Qatar may prefer to redeploy funds into areas where they have greater control or higher returns.
• Changing strategic focus: The passive nature of the stake (no board representation) may have meant limited influence for Qatar Airways. The airline may now opt for investments where it plays a more active role.
• Macro environment: Global aviation is evolving fast, rising costs, changing travel patterns, and regional fleet decisions all make the investment strategy more critical.

Impact on Qatar Airways

For Qatar Airways, the deal brings several implications:

• Cash inflow: The near-US$900 million proceeds improve liquidity. This can fund fleet renewal, digital upgrades, new routes, and more competitive services.
• Strategic flexibility: By freeing up capital, Qatar Airways may pursue investments where it has more say or stronger synergies.
• Focus on core operations: The sale may reflect a sharpened focus on its Doha hub and its premium global network rather than peripheral minority stakes.
• Signal to investors: The move sends a message that Qatar Airways is willing to adjust its holdings to maintain agility and stay ahead in a tough industry.

Impact on Cathay Pacific

For Cathay Pacific, the buy-back has its own consequences:

• Ownership clarity: With Qatar’s exit, Cathay gains a simplified shareholder structure. The major shareholders will have more consolidated stakes.
• Stock market boost: The reduction in floating shares and buy-back structure tends to support the share price, as seen in the immediate reaction.
• Confidence signal: The Chairman of Cathay described the buy-back as a sign of “strong confidence in the future of the Cathay Group”.
• Continuity of partnership: Despite the stake sale, the alliance and codeshare relationship between the two carriers remains intact; Qatar Airways and Cathay will continue to cooperate via oneworld.

Global Aviation Industry Context

We interpret this event in a wider industry lens:

• Post-pandemic recovery: Airlines worldwide are rethinking investments, cost bases, and strategic partnerships. Qatar Airways’ move fits that pattern.
• Increasing competition: Middle Eastern carriers like Qatar Airways have been fierce competitors to Asian carriers. With this sale, assets shift, but competition remains intense.
• Regional focus: Airlines may value investments where they can influence operations; passive stakes may not deliver the same strategic value as active ventures.
• Investment reshuffling: As airlines recover from the crisis years, we’ll likely see more portfolio adjustments, buy-backs, and changes in alliance strategy.

Conclusion

In summary, we see that Qatar Airways’ decision to sell its 9.57% stake in Cathay Pacific for around US$896 million is a major move in global aviation. It reflects strategic recalibration by Qatar Airways and gives Cathay new clarity. For travellers, shareholders, and industry watchers, this signals that the game in aviation investments is shifting. While the partnership between the two carriers continues, the alignment of each airline’s strategy is now coming into sharper focus. The wider message? In a fast-changing aviation world, flexibility, control, and strategic clarity matter more than ever.

FAQS

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.