Ge Long Hui·2026-02-24 05:12Core Viewpoint - The Asian full-service airline industry is entering a new era characterized by visible profitability and resilient margins, with Singapore Airlines and Cathay Pacific leading the regional recovery and growth [1] Group 1: Company Performance - Both Singapore Airlines and Cathay Pacific benefit from strong demand, disciplined capacity management, and early normalization of their balance sheets [1] - Cathay Pacific's target multiple is set at 6 times, with a new target price raised from HKD 9.1 to HKD 18, indicating approximately 40% upside potential [1] - Singapore Airlines' target price is increased from SGD 7 to SGD 8.4, reflecting about 20% upside potential, with a target multiple of 6.5 times [1] Group 2: Industry Outlook - The airlines are expected to benefit from industry supply constraints, strong growth in air traffic in the Asia-Pacific region, and the ability to flexibly allocate capacity to the most attractive markets [1] - Both airlines' ratings have been upgraded from "Neutral" to "Overweight" [1]