Qatar Airways has announced plans to sell its 9.6% stake in Cathay Pacific Airways for $896 million (£708 million), bringing an end to an eight-year partnership with Hong Kong’s flagship carrier.
The Doha-based airline approached Cathay with an offer to sell its entire holding, which Cathay will repurchase for $1.40 per share, pending approval from independent shareholders, according to a company filing on Wednesday.
Qatar Airways originally became Cathay’s third-largest shareholder in 2017, when it purchased the stake from Kingboard Chemical Holdings and other investors for $662 million — marking the first time a Middle Eastern carrier invested in an East Asian airline.
In a statement, Badr Mohammed Al-Meer, Chief Executive Officer of Qatar Airways, said the sale follows “a period of record profitability and strong performance,” describing it as part of a “proactive strategy to optimise our investments and position the group for long-term growth.”
Once the buyback is completed, Cathay’s largest shareholders — Swire Pacific and Air China — will increase their holdings to 47.7% and 37.8%, respectively.
Cathay Pacific chairman Patrick Healy said the decision underscores the company’s confidence in its future, pointing to $12.9 billion in planned investments over the next seven years to modernize its fleet and lounges.
Despite the divestment, both carriers confirmed they will continue their partnership through codeshare agreements and the Oneworld alliance, maintaining key route and network synergies.
Qatar Airways, the state-owned flag carrier of Qatar, continues to hold shares in major global airlines including IAG (British Airways’ parent), LATAM, and China Southern Airlines, reinforcing its presence across multiple regions even as it reshapes its portfolio.
