Qatar Airways is buying a 9.6% stake in Cathay Pacific. The transaction is expected to be completed later today in Hong Kong.

The Middle Eastern carrier is acquiring 378,188,000 shares previously held by a Hong Kong investment holding company, Kingboard Chemical Holdings, for HK$5.2bn (€580m). Qatar becomes the third-largest shareholder in Cathay, behind Swire Pacific (45%) and Air China (30%).

The move comes at a time of financial turbulence at Cathay. In March, the group reported its first annual loss since 2008, plunging HK$575m ($74m) into the red after reporting a HK$6bn profit the previous year. Sales dropped 9.4%, to HK$62.8bn. In August, the group announced its worst first-half loss in 20 years.

For Qatar Airways, the investment sits alongside existing stakes in International Airlines Group (20%), LATAM Airlines Group (10%) and Meridiana (49%). Both Cathay and Qatar are members of the oneworld airline alliance.