Morgan Stanley: Rated CATHAY PAC AIR (00293) "In Sync with the Market" with a target price of 9.1 Hong Kong dollars.

Morgan Stanley has released a research report stating that it has set a target price of 9.1 Hong Kong dollars for CATHAY PAC AIR (00293) and a "market perform" rating. The company's passenger load factor (PLF) has increased year-on-year in the past two months, which is encouraging and will result in passenger profits exceeding expectations. Morgan Stanley believes that travel demand is strong during the holiday peak season. Revenue passenger kilometers (RPK) increased by 27.9% year-on-year, reaching 76.5% of the level in 2018, while available seat kilometers (ASK) increased by 22.5% year-on-year, reaching 75.6% of the level in 2018. The passenger load factor (PLF) is 84.8%, an increase of 3.6 percentage points year-on-year, 1 percentage point higher than in 2018. Management has noticed that the demand for premium cabins brought by business travel is encouraging.