According to a report published by UBS, Cathay Pacific's recent weak stock price reflects market concerns about fuel costs, but the market underestimates the durability of its return on equity. Cathay Pacific's return on equity has remained at 19% over the past three years. The interim results for the first half of 2026 also showed that its pricing capacity in passenger and freight transport was superior to that of its peers, and core profit increased 45% year over year in a high oil price environment. According to the bank, there are at least seven structural drivers supporting Cathay Pacific's more durable and sustainable return on equity, including a shortage of wide-body airliners, a rise in the market share of Hong Kong International Airport from 49% in the first half of 2018 to 65% in the first half of 2026, fuel surcharge relaxation, membership plan reform, investment in high-end products, support from Hong Kong demand factors, and long-term growth opportunities for the freight business. The bank raised its target price from HK$19.4 to HK$20.1, maintaining a “buy” rating.

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