Doha/Hong Kong, November 5th, 2025 – Cathay Pacific and Qatar Airways have jointly announced an agreement under which Cathay will buy back Qatar Airways’ entire 9.6% shareholding for approximately US $897 million. The deal, confirmed on Tuesday, ends an eight-year equity relationship between the two oneworld partners and marks a key step in Qatar Airways’ evolving investment strategy.
In a joint statement, the airlines described the transaction as mutually agreed and consistent with their respective strategic priorities.
“This agreement reflects Qatar Airways Group’s disciplined approach to portfolio management”, said Badr Al-Meer, Group Chief Executive Officer of Qatar Airways, adding that the “this decision is part of a proactive strategy to optimise our investments and position the group for long-term growth”.
Patrick Healy, Group Chair of Cathay Pacific, said 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.”
Why Did Qatar Airways Sell Its Cathay Pacific Stake?
Qatar Airways framed the sale as part of a “disciplined portfolio strategy” aimed at optimizing investments for long-term growth. That language, while cautious, points to a strategic recalibration rather than a financial play. The move fits a broader pattern of the intention to shed low-influence stakes and sharpening focus on high-synergy ones.
The 9.6 percent Cathay holding, while symbolically valuable, offered little influence and no board seat. By contrast, Qatar Airways’ 25 percent position in International Airlines Group (IAG) offers genuine leverage and alignment on key markets.
The Cathay sale closes the chapter on Qatar’s earlier “flag-planting” era, when it took small minority positions across continents to build visibility and access. Between 2015 and 2019, the airline built a portfolio spanning IAG, LATAM Airlines Group, Cathay Pacific, China Southern and a 49 percent stake in Air Italy (liquidated in 2020).
In the post-pandemic phase, the strategy has sharpened. Qatar’s newer investments — 25 percent in South Africa’s Airlink and 25 percent in Virgin Australia, are larger, operationally relevant, and feed traffic directly into Doha. They also come with Board seats. Talks for up to 49 percent in RwandAir point to the same principle where influence, not footprint, is the goal.
Importantly, Qatar’s exit was not driven by Cathay’s financial weakness. The Hong Kong carrier has posted two consecutive years of profit, recording HK$ 9.9 billion (≈ US $1.3 billion) in 2024 and maintaining profitability through 2025. In fact, the strong position of both airlines makes it a win for both parties – allowing Cathay to simplify its ownership while Qatar frees up capital for redeployment.
But the deeper reason was relevance. With Swire Pacific and Air China holding controlling stakes, Qatar’s influence at Cathay was minimal beyond alliance cooperation under oneworld. In many ways, the equity tie-up had outlived its strategic purpose.
Qatar’s recent portfolio tells the story. Below is a snapshot of its known equity positions as of late 2025, illustrating where it’s pruning exposure and where it’s expanding influence.
| Airline | Stake | Year Acquired | Status |
|---|---|---|---|
| International Airlines Group (IAG) | ~25% | 2015 | Active |
| Cathay Pacific Airways | ~9.6% | 2017 | Sold – 2025 |
| LATAM Airlines Group | ~10% | 2016 | Active |
| Air Italy (Meridiana) | ~49% (historical) | 2017 | Exited / Liquidated 2020 |
| China Southern | ~5% | 2019 | Active |
| Airlink | ~25% | 2024 | Active |
| Virgin Australia | ~25% | 2024 | Active |
| RwandAir | Up to 49% (proposed) | In negotiation | Pending |
Table: Qatar Airways – Minority Equity Stakes & Exits, as of Nov 2025
The pattern is clear: the airline’s more recent partnerships create tangible network benefits or board-level leverage.
Why a Stake Still Matters in a Codeshare World
This brings us to the question: in an age of codeshares, why invest at all? Because equity anchors a partnership. A minority share, if meaningful, brings stability and access that codeshares alone can’t. It secures board dialogue, voting rights, long-term coordination, and influence over joint ventures.
For instance, Qatar’s 25 percent stake in IAG secures its seat inside one of the world’s most powerful transatlantic joint ventures. Its holdings in Airlink and Virgin Australia provide structural assurance that these partners will funnel traffic to Doha for the long run. These are strategic investments that directly serve Qatar Airways’ network ambitions. Cathay, by contrast, was a partnership that didn’t require capital to sustain – the oneworld alliance was sufficient.
Looking at the Gulf carriers’ strategic evolution: Etihad’s ill-fated “equity alliance” collapsed under the weight of control ambitions, while Emirates has long avoided equity altogether. Qatar Airways now occupies a middle ground of pursuing selective ownership that complements, rather than defines, its network.
Looking Ahead
Freed from a passive US $ 897 million position in Hong Kong, Qatar Airways can redirect capital into higher-impact markets, including Africa and Australasia, or into sustainability and fleet renewal.
What comes next for Qatar Airways remains to be seen. But for now, the strategy is clear: equity where it influences, partnership where it suffices.
(© The Aviation Brief | Analysis — Nov 2025)
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