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.
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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.
CATHAY PAC AIR Embraces Peking University Research to Advance CN SAF Development
Research Study Release: CATHAY PAC AIR welcomed the release of a study titled "Igniting the SAF Market: Policy Pathways for Scaling Sustainable Aviation Fuel in China," published by Peking University's National School of Development in late 2025.
Focus on Sustainable Aviation Fuel: The report discusses the challenges and opportunities in promoting the sustainable aviation fuel (SAF) industry in China, emphasizing the country's advantages in producing electro-sustainable aviation fuel (eSAF).
Cost Parity with Conventional Fuel: It suggests that with proper policy support, the cumulative output of eSAF could reach 1.6 million tonnes, making its costs comparable to conventional jet fuel, which would help reduce carbon emissions in the aviation sector.
Market Insights: The article notes that short selling for CATHAY PAC AIR is at $2.91 million with a ratio of 3.549%, indicating market activity related to the company's stock.
CX Anticipates Slower Growth This Year and Considers Cost-Cutting Strategies, Including Layoffs: Report
Growth Rate Decline: Cathay Pacific Air anticipates its growth rate will fall to single digits for the first time since the pandemic, prompting cost-cutting measures across departments.
Cost-Saving Initiatives: The airline plans to save about 5% in costs related to non-operational staff and reduce expenses in marketing and administration to allocate funds for investments in AI and other areas.
Restructuring Plans: As part of its restructuring, Cathay Pacific will merge some departments and positions, reassign employees, and implement a limited number of job cuts for both Hong Kong and overseas staff.
Market Performance: The stock has seen a short selling of $4.91 million, with a short selling ratio of 6.543%, indicating market concerns about the company's financial outlook.
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.
CATHAY PAC AIR Embraces Peking University Research to Advance CN SAF Development
Research Study Release: CATHAY PAC AIR welcomed the release of a study titled "Igniting the SAF Market: Policy Pathways for Scaling Sustainable Aviation Fuel in China," published by Peking University's National School of Development in late 2025.
Focus on Sustainable Aviation Fuel: The report discusses the challenges and opportunities in promoting the sustainable aviation fuel (SAF) industry in China, emphasizing the country's advantages in producing electro-sustainable aviation fuel (eSAF).
Cost Parity with Conventional Fuel: It suggests that with proper policy support, the cumulative output of eSAF could reach 1.6 million tonnes, making its costs comparable to conventional jet fuel, which would help reduce carbon emissions in the aviation sector.
Market Insights: The article notes that short selling for CATHAY PAC AIR is at $2.91 million with a ratio of 3.549%, indicating market activity related to the company's stock.
CX Anticipates Slower Growth This Year and Considers Cost-Cutting Strategies, Including Layoffs: Report
Growth Rate Decline: Cathay Pacific Air anticipates its growth rate will fall to single digits for the first time since the pandemic, prompting cost-cutting measures across departments.
Cost-Saving Initiatives: The airline plans to save about 5% in costs related to non-operational staff and reduce expenses in marketing and administration to allocate funds for investments in AI and other areas.
Restructuring Plans: As part of its restructuring, Cathay Pacific will merge some departments and positions, reassign employees, and implement a limited number of job cuts for both Hong Kong and overseas staff.
Market Performance: The stock has seen a short selling of $4.91 million, with a short selling ratio of 6.543%, indicating market concerns about the company's financial outlook.
