AIR CHINA Offers 6.6% Discount to Acquire Over 1.6% of CATHAY PACIFIC Shares; Anticipated Profit Before Tax Exceeds RMB 180 Million
Share Sale Announcement: Air China’s subsidiary Easerich sold 108 million shares of Cathay Pacific at HKD12.22 per share, totaling approximately HKD1.32 billion, which is a 6.6% discount from the previous closing price.
Impact on Shareholding: Following the sale, Air China's shareholding in Cathay Pacific decreased from 28.72% to 27.11%, but the company remains a significant strategic shareholder and optimistic about Cathay Pacific's future.
Profit Estimation: The estimated profit before tax from the share sale is around RMB182 million, excluding transaction fees and other costs, pending finalization in audited financial statements.
Lock-Up Agreement: Easerich and Air China have agreed to a 180-day lock-up period during which they will not sell or transfer any Cathay Pacific shares, except for intra-group transfers.
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Patrick Healy: EGM's Approval of Qatar Airways' Stake Buyback Demonstrates Confidence in CX Outlook
Share Buyback Approval: At the EGM of Cathay Pacific Air, 99.9968% of shareholders approved a resolution to repurchase shares held by Qatar Airways.
Chairman's Remarks: Chair Patrick Healy expressed satisfaction with the buyback approval, highlighting it as a sign of confidence in the company's long-term prospects and thanked Qatar Airways, Swire Pacific, and Air China for their support.
CX Special Transportation Solutions Represent 25-33% of Total Freight Volume; Six New Freighters Acquired
Freight Volume Contribution: Cathay Pacific Air's special transportation solutions, including medical cold chain and live animal transport, accounted for 25-33% of its overall freight volume.
Growth in Live Animal Transport: The company's live animal cargo volume increased by 4.3% last year, largely due to demand from horse racing and collaborations with the Hong Kong Jockey Club.
New Aircraft Orders: Cathay Pacific Air has ordered six new-generation Airbus A350-F freighters, with deliveries set to begin in 2028.
Market Activity: The company's stock experienced a slight decline of 0.694%, with short selling activity reported at $3.67 million and a ratio of 6.410%.
Cathay Pacific's 2026 Employee Profit Sharing Plan Payout Increases Year Over Year
Employee Profit-Sharing Plan: Cathay Pacific's CEO Ronald Lam announced a slight year-on-year growth in the employee profit-sharing plan for this year, reflecting the company's stable financial performance.
Customer Satisfaction Impact: The increase in profit-sharing is attributed to employees' efforts in improving the Customer Net Promoter Score (cNPS) to a record high of 34.8, which resulted in a 7% multiplier increase to the profit-sharing pool.
Citi Lowers CATHAY PAC AIR (00293.HK) Rating to Sell and Sets Target Price at $11.2
Citi Research Outlook: Citi Research predicts a low single-digit year-over-year decline or flat revenue per available seat kilometer (RASK) for airlines in the Asia-Pacific region in the first half of 2026.
CATHAY PAC AIR Downgrade: CATHAY PAC AIR's stock was downgraded from Neutral to Sell due to a 19% increase in share price over the past year, with a revised target price of $11.2.
Passenger Yield Forecast: The broker anticipates an 11% decline in CATHAY PAC AIR's passenger yield in 2026, influenced by a higher proportion of transit passengers and uncertainties in China's outbound travel.
Earnings Forecast Adjustment: Citi Research's earnings forecast for CATHAY PAC AIR in 2026 is projected to be 17% lower than the market consensus.
CX Pax Traffic Increases by 21.8% in December 2025, Achieving 26.5% Year-Over-Year Growth for the Year
Passenger Growth: Cathay Pacific reported a 21.8% increase in passengers carried in December 2025 compared to December 2024, totaling 2.74 million, with a full-year increase of 26.5%.
Record Passenger Numbers: On December 27, 2025, Cathay Pacific and HK Express set a record by carrying over 125,000 passengers in a single day, which was surpassed shortly after with over 126,000 passengers on January 3, 2026.
CATHAY PAC AIR to Cut Fuel Surcharges by Over 25% in February
Fuel Surcharge Adjustment: Cathay Pacific Air will reduce its fuel surcharges by over 25% effective February 1, 2026, across all route categories.
Specific Surcharge Changes: The fuel surcharge for short-haul flights will decrease from HKD191 to HKD142, for flights to the Indian subcontinent from HKD356 to HKD264, and for long-haul flights from HKD767 to HKD569.
Patrick Healy: EGM's Approval of Qatar Airways' Stake Buyback Demonstrates Confidence in CX Outlook
Share Buyback Approval: At the EGM of Cathay Pacific Air, 99.9968% of shareholders approved a resolution to repurchase shares held by Qatar Airways.
Chairman's Remarks: Chair Patrick Healy expressed satisfaction with the buyback approval, highlighting it as a sign of confidence in the company's long-term prospects and thanked Qatar Airways, Swire Pacific, and Air China for their support.
CX Special Transportation Solutions Represent 25-33% of Total Freight Volume; Six New Freighters Acquired
Freight Volume Contribution: Cathay Pacific Air's special transportation solutions, including medical cold chain and live animal transport, accounted for 25-33% of its overall freight volume.
Growth in Live Animal Transport: The company's live animal cargo volume increased by 4.3% last year, largely due to demand from horse racing and collaborations with the Hong Kong Jockey Club.
New Aircraft Orders: Cathay Pacific Air has ordered six new-generation Airbus A350-F freighters, with deliveries set to begin in 2028.
Market Activity: The company's stock experienced a slight decline of 0.694%, with short selling activity reported at $3.67 million and a ratio of 6.410%.
Cathay Pacific's 2026 Employee Profit Sharing Plan Payout Increases Year Over Year
Employee Profit-Sharing Plan: Cathay Pacific's CEO Ronald Lam announced a slight year-on-year growth in the employee profit-sharing plan for this year, reflecting the company's stable financial performance.
Customer Satisfaction Impact: The increase in profit-sharing is attributed to employees' efforts in improving the Customer Net Promoter Score (cNPS) to a record high of 34.8, which resulted in a 7% multiplier increase to the profit-sharing pool.
Citi Lowers CATHAY PAC AIR (00293.HK) Rating to Sell and Sets Target Price at $11.2
Citi Research Outlook: Citi Research predicts a low single-digit year-over-year decline or flat revenue per available seat kilometer (RASK) for airlines in the Asia-Pacific region in the first half of 2026.
CATHAY PAC AIR Downgrade: CATHAY PAC AIR's stock was downgraded from Neutral to Sell due to a 19% increase in share price over the past year, with a revised target price of $11.2.
Passenger Yield Forecast: The broker anticipates an 11% decline in CATHAY PAC AIR's passenger yield in 2026, influenced by a higher proportion of transit passengers and uncertainties in China's outbound travel.
Earnings Forecast Adjustment: Citi Research's earnings forecast for CATHAY PAC AIR in 2026 is projected to be 17% lower than the market consensus.
CX Pax Traffic Increases by 21.8% in December 2025, Achieving 26.5% Year-Over-Year Growth for the Year
Passenger Growth: Cathay Pacific reported a 21.8% increase in passengers carried in December 2025 compared to December 2024, totaling 2.74 million, with a full-year increase of 26.5%.
Record Passenger Numbers: On December 27, 2025, Cathay Pacific and HK Express set a record by carrying over 125,000 passengers in a single day, which was surpassed shortly after with over 126,000 passengers on January 3, 2026.
CATHAY PAC AIR to Cut Fuel Surcharges by Over 25% in February
Fuel Surcharge Adjustment: Cathay Pacific Air will reduce its fuel surcharges by over 25% effective February 1, 2026, across all route categories.
Specific Surcharge Changes: The fuel surcharge for short-haul flights will decrease from HKD191 to HKD142, for flights to the Indian subcontinent from HKD356 to HKD264, and for long-haul flights from HKD767 to HKD569.
