The Zhitong Finance App learned that Morgan Stanley released a research report saying that in August, the passenger transport business of Cathay Pacific (00293) normalized under a high base, while the cargo business was resilient; the bank believes that high aviation fuel prices are still the main obstacle to Cathay Pacific's short-term profits. The bank maintains Cathay Pacific's “Overweight” rating, with a target price of HK$16.9.

In August of this year, passenger kilometer revenue (RPK) increased 4% year on year (previous value up 6.6%), the number of available seat kilometers increased by 3.4% year on year (previous value up 5%), and the passenger load rate remained at a steady level of 87.2%, an increase of 0.5 percentage points year over year; management said the increase in freight demand was supported by demand for semiconductors, pharmaceuticals and inventory replenishment.

Looking ahead, management expects passenger demand to slow seasonally in September and improve around National Day Golden Week; freight demand is expected to be supported by high-tech product launches and traditional peak seasons.

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