0050 GMT - Cathay Pacific Airways' near-term earnings face pressure from elevated fuel costs, says HSBC analyst Parash Jain in a note. Korean Air Lines' recent 3Q results, in which a 67% rise in fuel expenses limited operating profit growth, are a cautionary read-across for Cathay, Jain says. HSBC, however, expects fuel costs to be partly cushioned by seasonal 4Q demand, which should support cargo volumes and yields. The bank cuts the stock's target price to 16 Hong Kong dollars from HK$16.50 but maintains a buy rating. Shares closed 1.1% lower at HK$13.20 on Tuesday.
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