Core Viewpoint - Morgan Stanley's research report indicates that Cathay Pacific's performance in the first half of the year fell short of market expectations, primarily due to a 12% year-on-year decline in passenger yield, alongside rising operating costs and competitive pressures, similar to Singapore Airlines, highlighting challenges faced by high-end full-service airlines in Asia [1] Summary by Category Financial Performance - Cathay Pacific's operating cash flow remained strong in the first half of the year, with its debt ratio remaining almost unchanged [1] - The company slightly reduced its dividend payout [1] Market Outlook - Morgan Stanley has revised its forecasts for Cathay Pacific for the fiscal years 2025 to 2027, lowering them by 5% to 8% compared to market consensus [1] - The rating for Cathay Pacific has been downgraded from "Neutral" to "Underweight" [1]

大和发表研究报告指，国泰航空上半年纯利按年升4%至36.51亿港元，受惠于停止与优先股股东的利润 分享，符合预期。集团维持每股股息0.2港元，惟派息率由去年上半年的38%跌至今年上半年的35%。大 和将集团今年每股盈利预测下调1%，并将其目标价由10.5港元下调至9.5港元，评级由"持有"降至"跑输 大市"。 该行指，整体而言，管理层对旅游需求仍有信心，并重申其对2025年下半年客运收益率恢复正常的预 期。集团计划增加长途线班次频率。另外由于近期需求低于平均水平，料日本航线或需时恢复。管理层 强调，年初至今，货运需求强劲，将积极地重新分配其全球航线网络的运力。 ...

Group 1 - Cathay Pacific Airways (00293) experienced a decline of over 3%, with a significant drop of more than 9% the previous day, currently trading at HKD 10.49 with a transaction volume of HKD 162 million [1] - The company reported a mid-year performance for 2025, with total revenue of HKD 54.309 billion, representing a year-on-year increase of 9.5%, and a net profit attributable to shareholders of HKD 3.651 billion, up 1.1% [1] - The interim dividend declared is HKD 0.20 per share [1] Group 2 - Cathay Pacific announced the exercise of a purchase option under a 2013 subscription agreement to acquire 14 Boeing 777-9 aircraft, with a basic price of approximately USD 8.1 billion, equivalent to about HKD 63.2 billion, expecting a lower actual cost due to significant discounts from the manufacturer [1] - Morgan Stanley's report indicated that the net profit attributable to ordinary shareholders for the first half of the year increased by 8.3% year-on-year, while operating profit remained flat at HKD 5.9 billion, below market expectations of HKD 6.6 billion [1] - The passenger yield was below expectations, primarily due to the normalization of long-haul route yields and increased competition on short-haul routes, despite strong demand in business class and an increase in passenger load factor year-on-year [1] Group 3 - The market generally anticipates a year-on-year decline in net profit for the full year of 2025, but Morgan Stanley believes the downside risk is limited [1] - The rating is "in line with the market," with a target price set at HKD 12.1 [1]

Core Viewpoint - Cathay Pacific Airways announced its mid-year results for 2025 and revealed plans to purchase an additional 14 Boeing 777-9 aircraft, increasing its total order to 35 units [1][3]. Group 1: Financial Details - The basic price for the 14 additional aircraft is approximately $8.1 billion (around HKD 63.2 billion), but the actual cost will be lower due to significant discounts from the manufacturer [3]. - The company’s current market capitalization is HKD 69.868 billion, with a share price of HKD 10.85 [1]. Group 2: Strategic Partnerships - Cathay Pacific has a long-standing partnership with both Airbus and Boeing, with each manufacturer’s aircraft making up about half of its fleet [3]. - The management emphasized the importance of maintaining long-term relationships with both manufacturers [3]. Group 3: Aircraft Performance and Future Plans - The chairman of Cathay Pacific expressed confidence in Boeing's commitment to improving production quality and engineering, noting that Boeing has resumed test flights with four aircraft having completed over 1,400 flights totaling more than 4,000 hours [3]. - The company plans to integrate the new Boeing 777-9 aircraft into its fleet by 2027 and remains open to acquiring more in the future [3].

Core Viewpoint - Cathay Pacific Airways announced its mid-year results for 2025 and revealed plans to purchase an additional 14 Boeing 777-9 aircraft, increasing its total orders for this model to 35 units [2] Group 1: Financial Details - The basic price for the additional 14 aircraft is approximately $8.1 billion (around HKD 63.2 billion), with the actual cost expected to be lower due to significant discounts from the manufacturer [2] - The company's current market capitalization is HKD 69.868 billion, with a share price of HKD 10.85 [2] Group 2: Strategic Partnerships - Cathay Pacific has a long-standing partnership with both Airbus and Boeing, with each manufacturer’s aircraft making up roughly half of the fleet [2] - The management emphasized the importance of maintaining long-term relationships with both manufacturers [2] Group 3: Confidence in Boeing - The Chairman of Cathay Pacific expressed confidence in Boeing, noting that the company is prioritizing production quality and engineering amidst challenges [2] - Boeing has resumed test flights, with four aircraft currently undergoing testing, totaling over 1,400 flights and 4,000 hours [2] - Cathay Pacific aims to incorporate the new Boeing 777-9 aircraft into its fleet by 2027 and remains open to acquiring more in the future [2]

Core Viewpoint - Cathay Pacific Airways announced its mid-year results for 2025 and revealed plans to purchase an additional 14 Boeing 777-9 aircraft, increasing its total orders for this model to 35 aircraft [1][2]. Group 1: Financials and Aircraft Orders - The basic price for the additional 14 Boeing 777-9 aircraft is approximately $8.1 billion (around HKD 63.2 billion), with the actual cost expected to be lower due to significant discounts from the manufacturer [1]. - The company maintains a balanced fleet with aircraft from both Boeing and Airbus, each accounting for roughly half of its fleet [1]. Group 2: Management Insights - The Chairman of Cathay Pacific expressed confidence in Boeing's leadership focusing on production quality and engineering, which is crucial for the airline's future operations [2]. - The airline is optimistic about integrating the new Boeing 777-9 aircraft into its fleet by 2027 and plans to remain flexible in future acquisitions of this aircraft model [2].

Group 1: Financial Performance - Cathay Pacific reported a net profit of HKD 36.51 billion for the first half of the year, representing a year-on-year increase of 1.1% [1] - The company's revenue reached HKD 543.09 billion, showing a year-on-year growth of 9.5% [1] - The increase in profit was attributed to higher passenger volumes, stable cargo performance, and a 13% decrease in fuel costs due to lower fuel prices compared to previous years [1] Group 2: Operational Metrics - Passenger capacity increased by 26.3% year-on-year, while passenger turnover rose by 30% [1] - The average daily passenger load increased by 27.8%, with a seat load factor of 84.8%, up by 2.4 percentage points year-on-year [1] - Despite the strong demand for passenger transport, overall yield declined by 12.3% due to increased market capacity [1] Group 3: Future Outlook and Investments - The company plans to maintain strong demand momentum in the second half of the year, despite the impact of increased capacity on ticket prices and yields [1] - Cathay Pacific announced the exercise of a purchase option to acquire 14 additional Boeing 777-9 aircraft, with the first delivery expected in 2027 [2]

Core Viewpoint - Cathay Pacific reported a revenue of HKD 54.3 billion for the first half of the year, marking a 9.5% year-on-year increase, but profit growth faced pressure with a slight increase of 1.1% to HKD 3.65 billion [2] Group 1: Financial Performance - The passenger business revenue for Cathay Pacific was HKD 34.208 billion, up 14% year-on-year, although the yield decreased by 12.3% [2] - The total number of passengers carried was approximately 13.6 million, with a 30% year-on-year increase in passenger traffic measured in revenue passenger kilometers [2] - The company declared an interim dividend of HKD 0.20 per share [2] Group 2: Operational Insights - Cathay Pacific's low-cost subsidiary, HK Express, saw an expanded loss of HKD 520 million, significantly higher than the previous year's loss of HKD 60 million, despite a 33.5% increase in passenger volume [2] - The losses at HK Express were attributed to concerns over earthquakes affecting travel to Japan and the new routes still being in the cultivation phase [2][3] - The CEO noted that the revenue from Japanese routes constitutes about 50% of HK Express's income, but passenger numbers are recovering [3] Group 3: Future Outlook - Cathay Pacific anticipates a significant increase in passenger numbers by the first half of 2025, with a gradual profit recovery expected as market supply and demand balance out [2] - The cargo business showed stable performance with revenue of HKD 11.1 billion, a slight increase of 2.2%, although the load factor decreased to 58.6% [3] - The company is actively diversifying its market presence in Southeast Asia and exploring other cargo services beyond e-commerce [3] Group 4: Investment and Expansion - The group has committed to updating and expanding its fleet, including ordering over 100 new aircraft, with total investments exceeding HKD 100 billion [4] - Cathay Pacific exercised an option to purchase an additional 14 Boeing 777-9 aircraft, increasing its total order to 35 [4] Group 5: Market Reaction - Following the earnings report, Cathay Pacific's stock price fell by 9.66%, closing at HKD 10.85 per share [5]

Core Viewpoint - Cathay Pacific's financial performance in the first half of 2025 shows a net profit of HKD 3.7 billion, a 1.1% increase year-on-year, driven by growth in passenger capacity and volume, resilient cargo operations, and lower fuel costs, despite a decline in passenger yield due to increased global capacity [3][6]. Group 1: Financial Performance - Cathay Pacific's passenger revenue reached HKD 34.208 billion, a 14% year-on-year increase, with both passenger capacity and volume showing growth [1][3]. - The group reported a net profit of HKD 3.7 billion for the first half of 2025, reflecting a 1.1% increase compared to the previous year [3]. - The overall passenger yield decreased by 12.3%, with the Americas region experiencing the largest drop of 17.5% [6]. Group 2: Capacity and Volume - Available seat kilometers (ASK) increased by 26.3%, while revenue passenger kilometers (RPK) grew by 30% [2][4]. - The total number of passengers carried was 13.6 million, averaging 75,300 passengers per day, representing a 27.8% year-on-year increase [6]. - Load factor improved to 84.8%, up from 82.4% in the same period last year, with significant increases in North Asia, Southeast Asia, and South Asia, Middle East, and Africa regions [6]. Group 3: Subsidiary Performance - Cathay Pacific's low-cost subsidiary, Hong Kong Express, reported a loss of HKD 524 million, compared to a profit of HKD 66 million in the previous year [8][9]. - Hong Kong Express carried 3.8 million passengers, with a load factor of 78.9%, down from 85% in the previous year, and a revenue yield decline of 21.6% [8][9]. - The loss was attributed to reduced travel to traditional destinations like Japan due to earthquake rumors and the time required to cultivate new routes [9]. Group 4: Future Outlook - The management expressed optimism for maintaining stable annual performance over three consecutive years, contingent on oil prices and global trends [3][7]. - Cathay Pacific announced an additional order for 14 Boeing 777-9 aircraft, increasing the total order to 35, indicating confidence in future travel demand [7].

Core Viewpoint - Cathay Pacific's subsidiary Hong Kong Express recorded losses in the first half of the year due to rumors about earthquakes in Japan affecting travel demand, but the company is diversifying its route network to reduce reliance on Japan [1][2] Group 1: Financial Performance - Hong Kong Express reported losses in the first half of the year primarily due to a significant drop in travel demand to Japan in May and June, which is expected to take time to recover [1] - The company has opened several new routes in recent years, which are still in the cultivation phase and unlikely to be profitable in the short term, although the long-term outlook remains positive [1] Group 2: Route Expansion and Demand - As of June this year, Cathay Pacific has expanded its global passenger destinations to over 100, implementing a strategy of parallel expansion in domestic and international routes [2] - The average passenger load factor is currently at 85%, with expectations for continued strong demand and potential revenue growth in the second half of the year [2] Group 3: Operational Strategy - Cathay Pacific announced an additional purchase of 14 Boeing 777-9 aircraft, with future investments expected to exceed HKD 100 billion, emphasizing the importance of financial stability over the next decade [1] - The company is actively seeking new opportunities in the cargo market despite uncertainties due to tariffs and global economic fluctuations, leveraging flexible scheduling and route optimization [2] Group 4: Market Conditions - The company anticipates that ticket prices may gradually decline as capacity continues to increase, helping to restore market supply and demand balance [2] - The performance in the second half of the year will be influenced by oil price trends, with hopes of achieving stable profits for three consecutive years [2]