HK Stock Market Move | CATHAY PAC AIR (00293) rises over 2%; September passenger traffic up 12% year-on-year; UBS says market underestimates the durability of the company's return on equity performance

CATHAY PAC AIR (00293) rose over 2%, up 1.68% as of press time at HK$13.29, with turnover of HK$38.5951 million. On the news front, CATHAY PAC AIR recently released its September operating data. CATHAY PAC AIR's passenger traffic in September 2026 increased by 12% compared with the same month in 2025, while available seat kilometers grew by 9% year-on-year. In the first nine months of 2026, passenger traffic increased by 14% compared with the same period in 2025. UBS said that CATHAY PAC AIR continued to record healthy demand in a traditionally quieter month, with both passenger and cargo businesses continuing to grow, and management extended its positive outlook into the fourth quarter of this year. Management expects demand for full-service and low-cost passenger services to remain healthy in the fourth quarter. UBS believes that although CATHAY PAC AIR's recent share price weakness reflects market concerns over fuel costs, the market underestimates the durability of its return on equity performance. Over the past three years, CATHAY PAC AIR has consistently maintained a return on equity of 19%. Its first-half 2026 results also confirmed the company's pricing power in both passenger and cargo businesses, with core profit still growing 45% year-on-year amid the current environment of elevated fuel prices. The bank expects CATHAY PAC AIR to achieve solid profit growth in 2026, with net profit potentially reaching HK$13.3 billion, up 22% year-on-year.