Cathay Pacific's Margins Likely to Be Dragged by High Fuel Costs -- Market Talk

Dow Jones05-25

0310 GMT - Cathay Pacific's 2026 operating profit margins are likely to be dragged by elevated fuel costs, Morningstar director Lorraine Tan says in a note. She raises her 2026 fuel cost assumptions by 15% and says that uncertainty over fuel prices remains a significant headwind for the carrier. "We are now less optimistic that Cathay can fully pass through higher fuel costs to consumers," she adds, noting that a full pass-through would dampen passenger demand. Morningstar lowers its fair value estimate for Cathay by 11% to 10.00 Hong Kong dollars to reflect weaker near-term profitability. Shares last closed at HK$12.60.(jason.chau@wsj.com)

(END) Dow Jones Newswires

May 24, 2026 23:10 ET (03:10 GMT)

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