Hong Kong airline Cathay Pacific announced on Wednesday that it had posted its first annual operating profit since 2019, marking a major milestone in its recovery from the COVID-19 pandemic.

The carrier, which has struggled to keep pace with regional rivals such as Singapore Airlines, benefited from a relaxation of pandemic restrictions in Hong Kong during the second half of 2022.

The company reported an operating profit of HK$3.55 billion ($452 million) for the year, but suffered a loss attributable to shareholders of HK$6.5 billion. This loss was due to losses incurred by Cathay Pacific's associate companies.

The airline carried 2.8 million passengers last year, a fourfold increase from the previous year, generating $1.7 billion in revenue. Cathay Pacific aims to increase its passenger flight capacity to 70% of pre-pandemic levels by the end of 2023.