UBS: Cathay Pacific (00293.HK) is expected to increase its mid-term basic profit by 35% year-on-year, maintaining a "buy" rating

According to the financial news app, Zhitong Finance, UBS released a research report stating that Cathay Pacific Airways (00293.HK) had a polarized performance in passenger traffic in June this year. Full-service airline (FSC) Revenue Passenger Kilometers (RPK) increased by 29% year-on-year, surpassing the 26% growth in Available Seat Kilometers (ASK), driving up the passenger load factor by 2.1 percentage points. This was mainly due to the return of British and American students to Hong Kong, as well as a shift in some Japanese passengers towards Southeast Asia and mainland China. UBS believes that the short-term weakness in the Hong Kong express delivery service will not affect the mid-term performance, maintaining its forecast of a 35% year-on-year increase in basic profitability for Cathay Pacific in the first half of the year, and expects demand on the Japan route to gradually recover as concerns about the July earthquake rumors subside. They maintain a "buy" rating with a target price of 12.9 Hong Kong dollars.