Cathay Pacific Airways Limited (HK:0293)
:0293
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Cathay Pacific Airways
(0293)
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Rating:75Outperform
Price Target:
HK$15.00
▲(23.25% Upside)
Action:UpgradedDate:03/12/26
The score is driven primarily by solid financial performance (strong profitability and cash generation, tempered by leverage and margin volatility) and very attractive valuation (low P/E and high dividend yield). Technicals are supportive but not strongly bullish, with mixed momentum indicators.
Positive Factors
Sustainable Profitability
Consistent positive margins (net ~9%, EBIT ~12%) indicate durable pricing power and operational discipline across the network. For an airline, sustainable margins support reinvestment in fleet and network, help absorb cyclical shocks, and underpin long-term cash generation even if volumes fluctuate.
Negative Factors
Elevated Leverage
Debt roughly in line with equity leaves limited financial headroom in a cyclical industry. Elevated leverage constrains flexibility to absorb demand shocks, pursue opportunistic investment or return capital, and increases vulnerability if margins compress or traffic weakens over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustainable Profitability
Consistent positive margins (net ~9%, EBIT ~12%) indicate durable pricing power and operational discipline across the network. For an airline, sustainable margins support reinvestment in fleet and network, help absorb cyclical shocks, and underpin long-term cash generation even if volumes fluctuate.
Read all positive factors
Cathay Pacific Airways (0293) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$74.01B
Dividend Yield5.38%
Average Volume (3M)6.04M
Price to Earnings (P/E)7.5
Beta (1Y)0.30
Revenue Growth8.54%
EPS Growth16.57%
CountryHK
Employees30,100
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.07
Shares Outstanding6,081,128,000
10 Day Avg. Volume4,665,298
30 Day Avg. Volume6,037,362
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)1.35
Price to Sales (P/S)0.70
P/FCF Ratio5.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.68Price Target Upside12.44% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.35
Revenue Forecast (FY)HK$121.25B
Cathay Pacific Airways Business Overview & Revenue Model
Company Description
Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo. The company conducts airline operations principally to and from Hong Kong. It also provides property investment, trave...
How the Company Makes Money
Cathay Pacific makes money mainly by selling air transportation and related services across passenger, cargo, and travel/support activities.
1) Passenger airline revenue
- Ticket sales: The core passenger business earns revenue from selling seats...
Cathay Pacific Airways Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 116.77B | 104.37B | 94.48B | 51.04B | 45.59B |
| Gross Profit | 20.49B | 32.58B | 20.70B | 4.42B | 836.00M |
| EBITDA | 26.18B | 21.45B | 20.47B | 16.02B | 9.21B |
| Net Income | 10.83B | 9.89B | 9.79B | -6.62B | -5.53B |
Balance Sheet | |||||
| Total Assets | 177.05B | 171.24B | 174.12B | 180.91B | 196.63B |
| Cash, Cash Equivalents and Short-Term Investments | 12.29B | 10.53B | 15.53B | 18.28B | 19.28B |
| Total Debt | 59.10B | 68.47B | 68.29B | 77.11B | 89.85B |
| Total Liabilities | 116.93B | 118.74B | 114.08B | 117.56B | 124.90B |
| Stockholders Equity | 60.11B | 52.50B | 60.03B | 63.80B | 71.72B |
Cash Flow | |||||
| Free Cash Flow | 15.93B | 14.33B | 19.61B | 15.20B | 6.56B |
| Operating Cash Flow | 25.76B | 23.54B | 26.41B | 18.93B | 8.84B |
| Investing Cash Flow | -7.82B | -6.08B | -2.67B | -3.86B | 493.00M |
| Financing Cash Flow | -15.45B | -19.83B | -23.18B | -16.24B | -6.93B |
Cathay Pacific Airways Technical Analysis
Negative
12.17
Price Trends
12.66
Negative
12.37
Negative
11.57
Positive
Market Momentum
-0.16
Positive
43.14
Neutral
40.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0293, the sentiment is Negative. The current price of 12.17 is below the 20-day moving average (MA) of 12.61, below the 50-day MA of 12.66, and above the 200-day MA of 11.57, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 40.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0293.
Cathay Pacific Airways Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$74.01B | 7.51 | 19.38% | 5.38% | 8.54% | 16.57% | |
71 Outperform | HK$93.51B | 7.02 | 11.33% | 12.81% | 28.91% | 150.66% | |
68 Neutral | HK$104.02B | 28.96 | 1.14% | 5.26% | 6.44% | -95.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | HK$102.23B | -41.11 | -7.13% | ― | 4.61% | 38.36% | |
56 Neutral | HK$122.39B | 89.68 | 0.20% | ― | 4.08% | ― | |
55 Neutral | HK$106.84B | -21.78 | -6.44% | ― | 1.42% | 3.33% |
* Industrials Sector Average
HK:0293
Cathay Pacific Airways
12.17
2.48
25.63%
HK:0753
Air China
4.77
-0.13
-2.65%
HK:0316
Orient Overseas (International)
141.60
38.93
37.92%
HK:0019
Swire Pacific
85.70
20.59
31.63%
HK:1055
China Southern Airlines Company Limited Class H
4.06
0.51
14.37%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.70
1.18
46.83%
Cathay Pacific Airways Corporate Events
Cathay Pacific Declares Second Interim Dividend for 2025
Mar 11, 2026
Cathay Pacific Airways has declared a second interim ordinary dividend of HKD 0.64 per share for the financial year ending 31 December 2025. The announcement signals ongoing shareholder returns and provides visibility on the airline’s capita...
Cathay Pacific Lifts 2025 Profit as Capacity and Utilisation Surge
Mar 11, 2026
Cathay Pacific Airways reported 2025 group revenue of HK$116.77 billion, up 11.9% year-on-year, with profit attributable to shareholders rising 9.5% to HK$10.83 billion and basic earnings per share increasing 10.9%. The airline strengthened its ba...
Cathay Pacific Completes Off-Market Share Buy-Back From Qatar Airways
Feb 24, 2026
Cathay Pacific Airways has completed an off-market share buy-back from Qatar Airways, with the transaction closing on 24 February 2026 and the repurchased shares to be held as treasury stock. The move removes Qatar Airways as a shareholder and red...
Cathay Pacific Starts 2026 Strong With Higher Passenger and Cargo Volumes
Feb 24, 2026
Cathay Pacific Airways reported a strong start to 2026, with the Cathay Group’s passenger airlines Cathay Pacific and HK Express carrying more than 3.3 million passengers in January, up 11% year on year, while Cathay Cargo volumes rose 5% to...
Cathay Pacific Wins Shareholder Approval for Off-Market Buy-Back With Qatar Airways
Feb 12, 2026
Cathay Pacific Airways has secured overwhelming shareholder approval for a special resolution authorising an off-market share buy-back, with 99.9968% of independent votes cast in favour at its extraordinary general meeting. Qatar Airways and its c...
Cathay Pacific Posts Record Year-End Traffic and Double-Digit Growth in 2025 Passenger and Cargo Volumes
Jan 21, 2026
Cathay Pacific Airways reported robust operational growth for December 2025 and the full year, highlighting strong performance in both its passenger and cargo businesses. The Cathay Group’s passenger airlines, Cathay Pacific and HK Express, ...
Cathay Pacific Sends Circular on Proposed Off‑Market Share Buy-back Ahead of February EGM
Jan 14, 2026
Cathay Pacific Airways has despatched a circular to shareholders outlining the terms of a proposed off‑market share buy-back, including details of the buy-back deed, recommendations from an independent board committee, and advice from an ind...
Cathay Pacific Calls EGM to Approve HK$6.97 Billion Share Buy-Back From Qatar Airways
Jan 14, 2026
Cathay Pacific Airways has called an extraordinary general meeting for 12 February 2026 in Hong Kong for shareholders to vote on a proposed off‑market share buy-back from Qatar Airways. The airline seeks approval to repurchase 643,076,181 sh...
Cathay Pacific Revises Shareholder Undertakings as Buy-Back Reshapes Ownership Structure
Jan 6, 2026
Cathay Pacific Airways has updated investors on changes to shareholder undertakings linked to its proposed off‑market share buy-back, following Air China’s agreement to dispose of 108,080,000 Cathay Pacific shares via a placing before ...
Cathay Pacific Updates on Off-Market Share Buy-Back and Reshapes Independent Board Committee
Dec 24, 2025
Cathay Pacific Airways has provided an update on its proposed off-market share buy-back, confirming that the shareholder circular is still being prepared and is expected to be dispatched by 14 January 2026, subject to finalisation of required info...
Cathay Pacific Outlines Board Composition and Governance Committee Roles
Dec 24, 2025
Cathay Pacific Airways has announced the current composition of its Board of Directors, detailing a mix of executive, non-executive and independent non-executive directors, including Chair Patrick Healy and Chief Executive Officer Ronald Lam, alon...
Cathay Pacific Reshapes Board as Swire and Mainland Aviation Leaders Take Key Roles
Dec 23, 2025
Cathay Pacific Airways has announced a series of board changes that will reshape its governance structure over the next 18 months, further underlining the airline’s close alignment with both the Swire group and major mainland aviation stakeh...
Cathay Pacific Flags Stronger 2025 Earnings but Warns on Unreviewed Profit Forecast
Dec 22, 2025
Cathay Pacific Airways has released its November 2025 traffic figures and simultaneously disclosed that management expects the Group’s second-half 2025 results to exceed those of the first half, and full-year 2025 results to surpass full-yea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.