Morgan Stanley: The cancellation of flights in the Greater Bay Area may have a potential positive impact on CATHAY PAC AIR (00293) and Mainland airlines.

Morgan Stanley released a research report stating that the cancellation of flights by Hong Kong Air in the Greater Bay Area may have a positive impact on CATHAY PAC AIR (00293) and mainland airlines. While Cathay Pacific does not directly compete with Hong Kong Air in the Greater Bay Area, it may benefit from improving market sentiment. It is worth noting that Cathay Pacific also owns the budget airline Hong Kong Express. The report indicated that the direct impact of the recent events on mainland airlines this year is relatively small, but it reflects the continuous supply interruptions in the aviation industry, which is a major factor that was previously emphasized as driving Chinese airlines into a multi-year growth cycle.