Cathay Pacific Airways Ltd (00293) shares rose more than 2%, and as of press time were up 1.68% at HK$13.29, with turnover of HK$38.5951 million.
On the news front, Cathay Pacific Airways Ltd (00293) recently released its September operating data, showing that its passenger traffic in September 2026 increased by 12% compared with the same month in 2025, while available seat kilometers rose by 9% year on year. In the first nine months of 2026, passenger traffic increased by 14% compared with the same period in 2025.
UBS said Cathay Pacific Airways Ltd (00293) still recorded healthy demand in traditionally quieter months, with both passenger and cargo businesses continuing to grow, and management extended its positive outlook into the fourth quarter of this year. Management expects full-service and low-cost passenger demand to remain healthy in the fourth quarter.
UBS believes that although the recent weakness in Cathay Pacific Airways Ltd (00293) shares reflects market concerns over fuel costs, the market underestimates the durability of its return on equity performance. Over the past three years, Cathay Pacific Airways Ltd (00293) has consistently maintained a return on equity of 19%. Its first-half 2026 results also confirmed the company's pricing power in both passenger and cargo businesses, and its core profit still grew 45% year on year amid the current high fuel price environment.
The bank expects Cathay Pacific Airways Ltd (00293) to achieve solid earnings growth in 2026, with net profit potentially reaching HK$13.3 billion, up 22% year on year.
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