DUBAI, United Arab Emirates (AP) — Qatar Airways will sell its stake in Hong Kong-based Cathay Pacific Airways in a share buyback valued at $896 million, the companies announced, ending the Qatari carrier's eight-year involvement with the airline.
The announcement came late Wednesday in a stock market filing by Cathay Pacific, which saw its shares gain 4.2% on the Hong Kong Stock Exchange on Thursday.
Under the agreement, Qatar Airways will sell all of its holdings, which represent 9.57% of Cathay Pacific stock. The airline's other major shareholders are Swire Pacific and Air China. The plan is subject to shareholder approval.
“The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub," Cathay Group chairman Patrick Healy said in a statement announcing the sale.
Qatar Airways, a state-owned airline flying out of the sprawling Hamad International Airport in Doha, did not acknowledge the sale itself. However, the Cathay Pacific statement included a comment from its CEO Badr Mohammed al-Meer saying the move represented the airline's “disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders.”
"Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the group for long-term growth," al-Meer said. Qatar Airways did not respond to questions from The Associated Press on Thursday.
Qatar Airways’ decision to divest likely had to do in part with its “limited strategic influence afforded by (its) minority stake,” DBS Bank analysts Tabitha Foo and Jason Sum said in an email.
The latest transaction also “further consolidates ownership among (Cathay’s) key shareholders, Swire Pacific and Air China”, they added, helping strengthen the firms' strategic control of the airline.
Qatar Airways bought its stake in Cathay Pacific in 2017 in a deal valued at the time around $662 million. Back then, Cathay Pacific faced financial losses and layoffs amid increasing competition from other airlines. The Hong Kong carrier posted a $1.2 billion profit in the last fiscal year.
Qatar Airways, along with Abu Dhabi-based Emirates and Dubai’s Emirates, are long-haul carriers that link East-West travel. Their location on the Arabian Peninsula between Europe and Asia have made them a key link in global transit. Qatar Airways also got a boost when the small, energy-rich nation hosted soccer’s 2022 FIFA World Cup.
Qatar Airways had struggled during a yearslong boycott by four Arab nations and the coronavirus pandemic. However, it soared to a $2.15 billion profit in its last fiscal year. Qatar Airways also has holdings in International Airlines Group, LATAM Airlines Group, China Southern Airlines, Virgin Australia and South Africa's Airlink.
Associated Press business writer Chan Ho-him in Hong Kong contributed to this report.
FILE - A Cathay Pacific airplane taxis at Hong Kong International Airport in Hong Kong on Nov. 25, 2022. (AP Photo/Vernon Yuen, File)
TOKYO (AP) — Asian shares mostly declined Tuesday, despite a rally on Wall Street boosted by easing oil prices, as regional investors still weighed the impact from the recent joint U.S.-Japan currency intervention.
Japan's benchmark Nikkei 225 slipped 0.6% to 63,369.85, as the U.S. dollar inched up to 157.63 Japanese yen from 157.18 yen. The euro cost $1.1511, little changed from $1.1514. The dollar was trading at 160-yen levels before the intervention.
Some analysts said the effectiveness of such an intervention remains uncertain as it doesn't address the fundamental economic reasons behind the currency fluctuations, including inflation, interest rates and the relative strengths of the economies.
“A U.S.-backed operation carries far more signaling weight than Tokyo acting alone, and the pledge of further action will give speculators pause. But any U.S. contribution will probably be constrained by size,” a report by BMI, a unit of Fitch Solutions, said.
Matthew Ryan, head of market strategy at global financial services firm Ebury, noted the latest effort could have some impact because it appears to signal a real change in monetary policy rather than just a one-time defensive move.
“This is an historic and meaningful development for the yen, which materially improves confidence in our mildly bullish call for the currency,” he said.
South Korea's Kospi inched down less than 0.1% to 6,254.76. Australia's S&P/ASX 200 added 1.2% to 9,128.60. Hong Kong's Hang Seng fell 0.5% to 25,881.99, while the Shanghai Composite declined 0.2% to 3,802.61.
On Wall Street, share prices rallied Monday after easing oil prices helped calm worries that inflation could get even worse. The S&P 500 jumped 1.5% and is just 0.1% below its record set earlier this summer.
The Dow Jones Industrial Average, which measures a narrower slice of the U.S. stock market, climbed 693 points or 1.3% to an all-time high, while the Nasdaq composite leaped 2.1%.
In energy trading in Asia early Tuesday, benchmark U.S. crude gained 50 cents to $80.84 a barrel. Brent crude, the international standard, rose 63 cents to $84.40 a barrel.
A day earlier, it had dropped after U.S. President Donald Trump said over the weekend that he decided to hold off on new strikes against Iran at the urging of allies in the region.
Brent’s price careened between $72 and $102 last month as worries rose and fell over the war in Iran and when oil tankers would be allowed to freely exit the Persian Gulf again to deliver crude to customers worldwide.
The yield on the 10-year Treasury sank to 4.68% from 4.75% late Friday. It remains well above its 3.97% level from before the war with Iran.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
AP Business Writer Stan Choe contributed to this report.
A trader works on the floor of the New York Stock Exchange, Thursday, July 30, 2026, in New York. (AP Photo/Yuki Iwamura)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 4, 2026. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 4, 2026. (AP Photo/Ahn Young-joon)
