Cathay Pacific Airways : September 2018 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)

September 2018 Traffic Figures

The appended press release contains combined traffic figures for September 2018 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: John Harrison, Irene Lee, Andrew Tung and Peter Wong.

By Order of the Board

Cathay Pacific Airways Limited David Fu

Company Secretary

Hong Kong, 19th October 2018

19 October 2018

FOR IMMEDIATE RELEASE

CATHAY PACIFIC RELEASES COMBINED TRAFFIC FIGURES

FOR SEPTEMBER 2018

Cathay Pacific Group today released combined Cathay Pacific and Cathay Dragon traffic figures for September 2018 that show a decrease in the number of passengers carried due to typhoon disruption and an increase in cargo and mail uplifted compared to the same month in 2017.

Cathay Pacific and Cathay Dragon carried a total of 2,612,643 passengers last month, a decrease of 1.0% compared to September 2017. The passenger load factor decreased 0.2 percentage points to 80.8%, while capacity, measured in available seat kilometres (ASKs), increased by 0.7%. In the first nine months of 2018, the number of passenger carried grew by 2.0% while capacity increased by 3.1%.

The two airlines carried 180,623 tonnes of cargo and mail last month, an increase of 1.7% compared to the same month last year. The cargo and mail load factor rose by 1.1 percentage points to 69.2%. Capacity, measured in available freight tonne kilometres (AFTKs), was increased by 0.7% while cargo and mail revenue freight tonne kilometres (RFTKs) increased by 2.3%. In the first nine months of 2018, the tonnage rose by 6.4% against a 3.0% increase in capacity and a 6.1% increase in RFTKs.

Cathay Pacific Director Commercial and Cargo Ronald Lam said: "The significant disruption caused by Typhoon Mangkhut in Hong Kong and Typhoon Jebi in Japan negatively impacted both our passenger and cargo businesses in September, leading to slower capacity and revenue growth than had been anticipated.

"On the passenger front, the load factor remained stable based on the operated capacity, whereas gross yield only achieved small growth, with the previous favourable currency trend ceasing in September.

"On the cargo front, demand continued to strengthen as we moved into the seasonal peak and we saw both year-on-year load factor and yield improvements during the month. However, we continue to closely monitor external factors that are impacting global trade."

The full September figures are on the next page.

CATHAY PACIFIC / CATHAY DRAGON COMBINED TRAFFIC	SEP 2018	% Change VS SEP 2017	Cumulative SEP 2018	% Change YTD
RPK (000)
- Mainland China	694,446	-3.0%	7,034,974	2.8%
- North East Asia	1,149,910	1.7%	12,043,531	2.4%
- South East Asia	1,218,925	-2.8%	12,905,686	1.0%
- South Asia, Middle East & Africa	749,240	-5.2%	7,219,404	-1.2%
- South West Pacific	1,149,871	-3.0%	11,179,037	0.9%
- North America	2,500,791	-1.4%	26,172,029	0.7%
- Europe	2,456,809	8.8%	20,944,965	9.4%
RPK Total (000)	9,919,992	0.5%	97,499,626	2.7%
Passengers carried	2,612,643	-1.0%	26,528,801	2.0%
Cargo and mail revenue tonne km (000)	1,014,477	2.3%	8,943,186	6.1%
Cargo and mail carried (000kg)	180,623	1.7%	1,591,453	6.4%
Number of flights	6,354	-1.8%	60,993	2.0%

CATHAY PACIFIC / CATHAY DRAGON COMBINED CAPACITY	SEP 2018	% Change VS SEP 2017	Cumulative SEP 2018	% Change YTD
ASK (000)
- Mainland China	924,213	-6.7%	8,854,562	0.5%
- North East Asia	1,428,630	1.7%	14,665,756	3.5%
- South East Asia	1,590,680	-0.6%	15,586,454	2.8%
- South Asia, Middle East & Africa	935,573	-2.7%	8,764,096	-0.3%
- South West Pacific	1,343,907	-4.2%	13,670,827	4.7%
- North America	3,206,316	-0.5%	29,920,916	-1.8%
- Europe	2,844,630	9.4%	23,937,505	11.4%
ASK Total (000)	12,273,949	0.7%	115,400,116	3.1%
Passenger load factor	80.8%	-0.2pt	84.5%	-0.3pt
Available cargo/mail tonne km (000)	1,466,141	0.7%	13,034,192	3.0%
Cargo and mail load factor	69.2%	1.1pt	68.6%	1.9pt
ATK (000)	2,633,060	0.7%	24,006,227	3.0%

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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