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Cathay Pacific recovery “as fast as other airlines, if not faster” HSBC forecasts
November 30th 2022
HSBC Global Research expects Cathay Pacific's recovery from COVID-19 to match its airline rivals in the region. Read More » “Cathay Pacific is behind its Singaporean and Australian peers due to the timing of travel relaxations in Hong Kong,” HSBC analysts said in a November 28 research note. “Singapore and Australia relaxed restrictions much earlier than Hong Kong and they did not subject crews to quarantine. Going forward, Cathay’s recovery pace will be as fast as other airlines, if not faster, in our view.” The airline group, Cathay Pacific and LCC HK Express, predicted earlier this month that its passenger capacity will reach about 70% of pre-COVID-19 levels at year-end 2023 and be fully restored to pre-pandemic numbers by December 2024. “We continue to argue Cathay is well-positioned to benefit from strong pent-up demand amid a further relaxation of travel rules, a strong cargo market, favourable fuel hedging at US$50-US$60/barrel, effective cost management and a well-capitalised balance sheet,” HSBC said. “We believe the news flow on further relaxation of travel rules for Hong Kong and China will continue to drive the group’s share price.”
