Cathay Pacific Airways : February 2019 Traffic Figures

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CATHAY PACIFIC AIRWAYS LIMITED 國泰航空有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 293)

February 2019 Traffic Figures

The appended press release contains combined traffic figures for February 2019 for Cathay Pacific Airways Limited ("Cathay Pacific") and its wholly owned subsidiary, Hong Kong Dragon Airlines Limited ("Cathay Dragon"). The information in the press release may be price sensitive. This announcement containing the press release is accordingly being issued pursuant to Part XIVA of the Securities and Futures Ordinance. The information in the press release has been prepared on the basis of internal management records. It has not been audited or reviewed by external auditors.

This announcement is issued by Cathay Pacific pursuant to Part XIVA of the Securities and Futures Ordinance.

The information in this announcement has been prepared on the basis of internal management records. It has not been audited or reviewed by external auditors.

Investors are advised to exercise caution in dealing in shares of Cathay Pacific.

As at the date of this announcement, the Directors of Cathay Pacific are:

Executive Directors: John Slosar (Chairman), Rupert Hogg, Gregory Hughes, Paul Loo, Martin Murray;

Non-Executive Directors: Cai Jianjiang, Ivan Chu, Michelle Low, Song Zhiyong, Merlin Swire, Samuel Swire, Xiao Feng, Zhao Xiaohang;

Independent Non-Executive Directors: Bernard Chan, John Harrison, Irene Lee and Andrew Tung.

By Order of the Board

Cathay Pacific Airways Limited David Fu

Company Secretary

Hong Kong, 20th March 2019

20 March 2019

FOR IMMEDIATE RELEASE

CATHAY PACIFIC RELEASES COMBINED TRAFFIC FIGURES

FOR FEBRUARY 2019

Cathay Pacific Group today released combined Cathay Pacific and Cathay Dragon traffic figures for February 2019 that show an increase in the number of passengers carried and a drop in cargo and mail uplifted compared to the same month in 2018.

Cathay Pacific and Cathay Dragon carried a total of 2,833,534 passengers last month - an increase of 1.0% compared to February 2018. The passenger load factor decreased 2.4 percentage points to 81.7%, while capacity, measured in available seat kilometres (ASKs), increased by 5.9%. In the first two months of 2019, the number of passenger carried grew by 4.3% while capacity increased by 6.5%.

The two airlines carried 131,320 tonnes of cargo and mail last month, a decrease of 9.9% compared to the same month last year. The cargo and mail load factor fell by 5.0 percentage points to 60.7%. Capacity, measured in available freight tonne kilometres (AFTKs), decreased by 1.8% while cargo and mail revenue freight tonne kilometres (RFTKs) dropped by 9.3%. In the first two months of 2019, the tonnage fell by 6.4% against a 0.4% dip in capacity and a 7.1% decrease in RFTKs.

Cathay Pacific Director Commercial and Cargo Ronald Lam said: "It is important to highlight that the early Chinese New Year holiday resulted in distortion in both passenger and cargo revenue growth for January and February.

"The holiday was characterised by strong demand and yield growth on short-haul routes in Asia, but overall passenger volumes softened sharply in the weeks after, especially in Economy Class. As a result, revenue growth was not able to keep up with capacity increases in February.

"It was a similar story with cargo with slower demand pick-up after the holiday when compared with last year, especially out of mainland China and Hong Kong. We did however see good growth from Southeast Asia markets. We reduced some freighter capacity in February to match demand better."

The full February figures are on the next page.

CATHAY PACIFIC / CATHAY DRAGON COMBINED TRAFFIC	FEB 2019	% Change VS FEB 2018	Cumulative FEB 2019	% Change YTD
RPK (000)
- Mainland China	736,360	-7.2%	1,505,481	-0.5%
- North East Asia	1,355,848	2.9%	2,779,856	5.4%
- South East Asia	1,367,463	3.2%	2,887,360	4.7%
- South Asia, Middle East & Africa	806,551	11.0%	1,821,285	14.1%
- South West Pacific	1,457,708	5.5%	3,069,396	4.4%
- North America	2,582,178	2.4%	5,909,907	7.4%
- Europe	2,007,947	2.4%	4,394,222	7.5%
RPK Total (000)	10,314,055	2.9%	22,367,507	6.3%
Passengers carried	2,833,534	1.0%	5,960,971	4.3%
Cargo and mail revenue tonne km (000)	750,152	-9.3%	1,654,160	-7.1%
Cargo and mail carried (000kg)	131,320	-9.9%	298,055	-6.4%
Number of flights	6,378	0.9%	13,401	1.5%

CATHAY PACIFIC / CATHAY DRAGON COMBINED CAPACITY	FEB 2019	% Change VS FEB 2018	Cumulative FEB 2019	% Change YTD
ASK (000)
- Mainland China	905,099	-2.5%	1,920,625	-0.9%
- North East Asia	1,671,620	3.5%	3,379,007	4.8%
- South East Asia	1,648,716	4.6%	3,448,867	4.5%
- South Asia, Middle East & Africa	1,036,237	11.7%	2,239,966	13.7%
- South West Pacific	1,685,442	0.4%	3,574,116	1.3%
- North America	3,170,510	8.7%	6,824,314	8.6%
- Europe	2,510,811	10.0%	5,245,728	10.4%
ASK Total (000)	12,628,435	5.9%	26,632,623	6.5%
Passenger load factor	81.7%	-2.4pt	84.0%	-0.1pt
Available cargo/mail tonne km (000)	1,235,247	-1.8%	2,703,799	-0.4%
Cargo and mail load factor	60.7%	-5.0pt	61.2%	-4.4pt
ATK (000)	2,435,789	1.8%	5,235,989	2.8%

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Cathay Pacific website:www.cathaypacific.com

Glossary

Terms:

Available seat kilometres ("ASK")

Passenger seat capacity, measured in seats available for the carriage of passengers on each sector multiplied by the sector distance.

Available tonne kilometres ("ATK")

Overall capacity measured in tonnes available for the carriage of passengers, excess baggage, cargo and mail on each sector multiplied by the sector distance.

Available cargo/mail tonne kilometres

Cargo capacity measured in tonnes available for the carriage of cargo and mail on each sector multiplied by the sector distance.

Revenue passenger kilometres ("RPK")

Number of passengers carried on each sector multiplied by the sector distance.

Cargo and Mail revenue tonne kilometres

Traffic volume, measured in load tonnes from the carriage of cargo and mail on each sector multiplied by the sector distance.

Ratio:

Revenue passenger kilometres/

Cargo and mail revenue tonne kilometres

Passenger/Cargo and mail load factor = ----------------------------------------------------

Available seat kilometres/

Available cargo and mail tonne kilometres