Air China Is Said to Sound Out Advisers on Raising Cathay Stake

Air China Ltd. has been sounding out advisers in recent months on the possible merits of raising its nearly 30% stake in Cathay Pacific Airways Ltd., according to people familiar with matter, rekindling a long-running idea as the 77-year-old Hong Kong carrier rebounds from the pandemic.

While it has flirted with the possibility in the past, including before Covid, state-run Air China’s need to boost profitability has added fresh momentum, some of the people said, though nothing is likely to happen imminently.

Passengers line up to board a Cathay Pacific flight at Hong Kong International Airport.

Photographer: Lam Yik/Bloomberg

Air China suffered a total loss of about 70 billion yuan ($9.7 billion) in the ...