Qatar Airways has been trying to compensate for this lost traffic and revenue by increasingly looking at global markets to expand its reach.
The Middle Eastern carrier will purchase 378.2 million shares from Kingboard Chemical, Kingboard Investments and Kingboard Laminates for HK$5.16 billion ($661 million). The airline cut 600 jobs in May as part of measures to rebound from its losses. The deal will make Qatar Airways the No 3 shareholder of Cathay Pacific after Swire Group and Air China.
Both airlines already collaborate together as members of the oneworld alliance.
Tremors were felt in early morning trading as Cathay's share slipped to HK$12.56 (US$1.6) - a drop of -4.6% - after opening at HK$13.14 (US$1.68), but climbed to trade at approximately HK$13.00 (US$1.66) in the afternoon session (correct at the time of writing).
Earlier in 2017, Qatar had planned to buy into American Airlines, but the idea was dropped after the United States carrier expressed little enthusiasm for the deal.
Earlier this year it made a bid to buy 10 percent in American Airlines, the United States' largest carrier, but the deal went sour and Qatari officials eventually said that "it no longer met" Qatar Airways' objective. The two carriers codeshared on each other's services between the two cities, with Cathay also placing its CX airline code on Qatar-operated services beyond Doha to points in Europe, the Middle East and South America and Qatar adding its QR airline code on selected Cathay-operated flights to Australia, Japan, New Zealand and South Korea.