Cathay Pacific Airways Strong 1H26 beat delivered, briefing underscores multi-engine recovery

Research evidence excerpt

Asia Pacific Equity Research

05 August 2026

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Cathay Pacific Airways

Strong 1H26 beat delivered, briefing underscores

multi-engine recovery

Cathay Pacific delivered a clear 1H26 beat, with recurring underlying

NPAT of HK$5.3B (+45% Y/Y), c.20% above consensus and achieving

118% of JPMe, while reported NPAT was HK$6.2B (+71% Y/Y, +28%

vs. consensus). The post-earnings call held today (Aug. 5) reinforced the

quality of this result, with management highlighting that capacity growth

is being delivered through better utilization and network agility, not just

new aircraft. Yields remain robust, with passenger yield up 9% Y/Y and

cargo yield up 18% Y/Y, and premium mix and transit flows through

Hong Kong continue to support both volume and pricing. The Group is

capturing incremental market share on key long-haul and connecting flows

as travelers reroute away from Middle East hubs, while HK Express is

showing a meaningful turnaround and cargo remains a core earnings

driver. Management also emphasized strong summer bookings, a

constructive outlook for 3Q26, and a disciplined approach to cost and

capital management, with Op-CF up 23% Y/Y and a 50% payout policy

reiterated.

Overweight

0293.HK, 293 HK

Price: HK$14.80

05 Aug 2026

Price Target: HK$16.00

PT End Date: 30 Jun 2027

Infrastructure, Industrials &

Transport

Karen Li, CFA AC

(852) 2800-8589

Jenny Qiu, CFA

(852) 2800 8503

Neil Zhang

(852) 2800-8598

Beatrice Lam

(852) 2800-8738

J.P. Morgan Securities (Asia Pacific) Limited/

J.P. Morgan Broking (Hong Kong) Limited

Stock view: Cathay remains our top pick within the Asia region. Since

April, the stock is up 26% (vs HSI +2%), reflecting growing investor

recognition of Cathay’s differentiated positioning, utilization-led recovery,

and capital return discipline. The equity story is fundamentally different

from prior cycles: Cathay is now delivering a multi-engine recovery, with

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