BNP Paribas downgraded Cathay Pacific's rating from 'Outperform' to 'Neutral' due to rising fuel costs and the limited effectiveness of recent fuel surcharge increases. The bank's analysis indicates that the price hikes can only offset about 70% of the recent jet fuel price increase, leading to expected profit pressures in a high oil price environment. Additionally, the bank has lowered its earnings forecasts for Cathay Pacific for this year and next, resulting in a reduced target price.
