Bank of America Securities: It is expected that the risk of soaring fuel costs for Cathay Pacific Airways (00293) has not been reflected yet. The "underperform" rating is maintained.

Bank of America Securities released a research report saying that CATHAY PAC AIR (00293) is expected to achieve higher net profit in 2025 than market consensus, mainly benefiting from one-time gains from the resolution of Hong Kong Aircraft Engineering Company (HAECO) and lower interest costs from last year's rate cuts. Unit revenue and unit costs roughly match the bank's expectations. Cathay Pacific's goal is to achieve a 10% increase in passenger capacity in 2026 and indicates that the cargo business has a promising start in the first two months of 2026, but acknowledges the risk of soaring fuel costs. Approximately 30% of Brent crude oil usage for the first quarter of 2026 has been hedged. Bank of America Securities maintains a "underperform" rating for CATHAY PAC AIR, believing that the spread between passenger and fuel costs has not been reflected in the stock price; with a target price of 10.9 Hong Kong dollars.