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Beyond

Cathay Pacific suspends Gulf flights until April

Hong Kong-based airline Cathay Pacific has suspended its flights to Dubai and Riyadh until the end of April, as tensions continue to rise in the Middle East. The decision comes amid growing security concerns and instability in the region’s airspace.

The airline announced that all passenger and cargo services between Hong Kong and key Gulf destinations, including Dubai and Riyadh, will remain halted until April 30. The suspension is an extension of earlier cancellations that were initially scheduled to last until the end of March.

Cathay Pacific said the move was necessary due to the “volatile situation” in the region, emphasising that passenger and crew safety remains its top priority. The airline has been closely monitoring developments and indicated that further changes could be made depending on how the situation evolves.

The disruption is linked to the ongoing conflict in the Middle East, which has led to airspace restrictions, missile activity, and security risks across several countries. The crisis began after military strikes in late February and has since escalated, forcing airlines worldwide to reassess their flight operations.

As a result, many global carriers have either suspended or rerouted flights to avoid affected airspace. The situation has significantly impacted major aviation hubs such as Dubai, causing widespread travel disruptions and forcing passengers to seek alternative routes.

Cathay Pacific has offered affected passengers options including rebooking, rerouting, or full refunds without additional charges. The airline is also increasing capacity on other routes, particularly to European destinations, to accommodate displaced travellers.

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Categories
Corporate

Qatar Airways Sells Cathay Pacific Stake for $897 Million

Qatar Airways has sold its entire 9.7% stake in Cathay Pacific Airways for around $897 million, marking a complete exit from the Hong Kong-based carrier after eight years of investment.

Cathay Pacific will repurchase the shares at HK$10.84 each, about 4% lower than its last closing price. Once the deal is completed, Swire Pacific’s ownership in Cathay will rise to 47.69% from 43.12%, while Air China’s stake will increase to 31.78% from 28.74%.

Qatar Airways had acquired the stake in 2017, becoming Cathay’s third-largest shareholder. The sale is part of Qatar’s strategy to rebalance its investment portfolio and strengthen its position for future expansion.

Cathay Pacific described the buy-back as a sign of confidence in its growth plans. The airline is investing nearly HK$100 billion over the next seven years in new aircraft, upgraded cabins, and enhanced lounge experiences.

After facing heavy losses during the pandemic, Cathay has shown steady recovery, with passenger numbers in September rising nearly 20% year-on-year.

Despite the divestment, both airlines will continue collaborating through the oneworld alliance, maintaining strong commercial ties even as ownership structures change.

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