Cathay Pacific Airways (0293) AI Stock Analysis

• Market Cap: $65.81B
• Dividend Yield: 9.59%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.23
• Revenue Growth: 10.46%
• EPS Growth: 5.94%
• Country: HK
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 84
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.49
• Shares Outstanding: 6,439,409,000
• 10 Day Avg. Volume: 6,115,547
• 30 Day Avg. Volume: 7,322,974
• PEG Ratio: 0.46
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.71
• Price Target Upside: -13.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: HK$11.50 ▲(14.31%Upside)

Cathay Pacific Airways holds a strong overall position due to its impressive financial performance and attractive valuation. The technical indicators support a positive trend, although there are emerging risks like leverage and declining free cash flow growth.

Positive Factors

Cargo Performance

Cargo revenue rose by 12% year-over-year, and cargo yield turned positive.

Earnings

Cathay Pacific Airways' 2024 core net profit beat consensus estimates by 11.4%.

Valuation

Cathay Pacific is trading below regional peers and at more than 1 standard deviation below its five-year pre-pandemic trading range, presenting an attractive valuation.

Negative Factors

Competition and Capacity

Macroeconomic headwinds or intense competition could curb Cathay Pacific's passenger traffic growth and suppress yields, while manpower shortages could hinder capacity addition.

Macroeconomic Risks

Macroeconomic headwinds could curb Cathay Pacific's passenger traffic recovery and suppress yields, posing potential risks to growth.

Operating Costs

Operating costs increased due to higher-than-expected staffing costs, which outpaced group revenue growth.

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, travel reward program, travel tour operator, financial, aircraft leasing and acquisition facilitation, airline catering, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, aircraft engineering, cargo carriage, airport ground engineering support and equipment maintenance, and inventory technical management services. In addition, the company operates a computer network for interchange of air cargo related information; and offers repair and maintenance services for transportation companies. It operates in the Americas, Europe, Southeast Asia, Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. As of December 31, 2021, it operated 234 aircraft directly connecting Hong Kong to 119 destinations in 35 countries worldwide, including 26 destinations in China. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau Island, Hong Kong.

How the Company Makes Money

Cathay Pacific Airways generates revenue primarily through the sale of passenger tickets and cargo services. The passenger segment is the largest revenue stream, with ticket sales across different classes offering varying pricing and service levels. Ancillary services, such as extra baggage, seat selection, and inflight sales, also contribute to revenue. The cargo division capitalizes on Hong Kong's strategic location as a global logistics hub, transporting goods worldwide. Additionally, the airline benefits from codeshare agreements and strategic partnerships, such as its membership in the oneworld alliance, which expands its network and attracts more customers. Revenue is further supported by loyalty programs, corporate travel agreements, and premium services offered at lounges and in-flight.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways shows a strong recovery trajectory with improving revenue and profitability. The income statement highlights a significant improvement in gross profit margins, but a slight drop in EBIT margin indicates rising non-operational costs. The balance sheet shows effective equity utilization, but a moderate debt-to-equity ratio poses leverage risks. Cash flow management is robust, though the negative growth rate in free cash flow is a concern.

Income Statement

The company shows a strong recovery with revenue growth of 10.43% from 2023 to 2024, and a significant improvement in gross profit margin to 31.2% in 2024. Net profit margin remains stable at 9.47%, reflecting solid profitability amidst a competitive industry. However, EBIT margin dropped slightly from 16% to 13.34% and EBITDA margin improved to 20.54%, indicating operational efficiency but also pointing to increased non-operational costs.

Balance Sheet

Cathay Pacific's balance sheet indicates a moderate debt-to-equity ratio of 1.3, showing reliance on leverage, which could pose risk if market conditions worsen. Return on equity (ROE) is healthy at 18.84%, suggesting effective use of equity financing to generate profits. The equity ratio is stable at 30.65%, indicating a balanced asset financing structure, but there's room for improving the equity base to enhance financial stability.

Cash Flow

The company demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 2.38, indicating efficient cash generation relative to net income. Free cash flow is positive and growing, reflecting improved cash handling and operational performance. However, the free cash flow growth rate is negative at -26.92%, suggesting a reduction in free cash flow from the previous year.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
104.37B	94.48B	51.04B	45.59B	46.93B
	Gross Profit
32.58B	20.70B	4.42B	836.00M	-5.55B
	EBIT
13.93B	15.13B	244.00M	-3.17B	-9.33B
	EBITDA
21.45B	20.47B	10.24B	9.21B	-3.74B
	Net Income Common Stockholders
9.89B	9.79B	-6.55B	-5.53B	-21.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.53B	15.53B	18.28B	19.28B	19.34B
	Total Assets
171.24B	174.12B	180.91B	196.63B	204.57B
	Total Debt
68.47B	68.29B	77.63B	90.38B	93.13B
	Net Debt
63.03B	60.40B	70.29B	81.81B	86.96B
	Total Liabilities
118.74B	114.08B	117.56B	124.90B	131.31B
	Stockholders Equity
52.50B	60.03B	63.35B	71.72B	73.26B
Cash Flow		Free Cash Flow
14.33B	19.61B	15.20B	6.56B	-19.03B
	Operating Cash Flow
23.54B	26.41B	18.93B	8.84B	-13.62B
	Investing Cash Flow
-6.08B	-2.67B	-3.86B	493.00M	-12.43B
	Financing Cash Flow
-19.83B	-23.18B	-16.24B	-6.93B	23.31B

Cathay Pacific Airways Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0293, the sentiment is Positive. The current price of 10.06 is below the 20-day moving average (MA) of 10.39, above the 50-day MA of 9.79, and above the 200-day MA of 9.09, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0293.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0293	73 Outperform	$65.81B	6.85	17.64%	9.59%	10.46%	5.94%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
AIRC		£12.48B	―	-1.68%	―	―	―
OROVF		$11.02B	4.41	21.08%	7.67%	―	―
SWRAF		$10.74B	22.21	1.64%	6.22%	―	―
0670	54 Neutral	HK$88.98B	―	-9.88%	―	14.25%	―
1055	50 Neutral	HK$101.61B	―	-4.92%	―	7.08%	―

Cathay Pacific Airways Corporate Events

Cathay Pacific Expands Global Reach and Earns Top Industry Honors

Cathay Pacific Airways announced its May 2025 traffic figures, highlighting a 36.1% increase in passengers compared to May 2024 and a 31.2% rise in Available Seat Kilometres. The company celebrated reaching 100 global passenger destinations and received significant accolades, including being named one of the world’s top three airlines in the Skytrax World Airline Awards. These achievements underscore Cathay Pacific’s commitment to enhancing its global network and service quality, with expectations of robust demand in the upcoming summer travel season.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific and Air China Expand Collaborative Framework Agreement

Cathay Pacific Airways and Air China have announced a New Framework Agreement to continue and expand their collaborative transactions beyond 2025. This agreement, effective from May 2025, includes a broader scope to cover each party’s 30%-controlled corporations, facilitating increased collaboration and operational efficiency. The agreement encompasses various services such as interline arrangements, code sharing, joint operations, and more, aiming to enhance the partnership between the two airlines and support their business growth.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Reports Strong April Traffic and Network Expansion

Cathay Pacific Airways reported a significant increase in passenger numbers for April 2025, with a 36.3% rise compared to April 2024. The company set a new post-pandemic record by carrying over 115,000 passengers on a single day. Cathay Pacific is expanding its network by launching flights to new destinations, aiming to reach 100 passenger destinations by mid-year. The company also noted positive developments in cargo operations due to recent tariff announcements between China and the United States, which may stabilize the market.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Airways Reports Successful AGM with All Resolutions Passed

Cathay Pacific Airways Limited held its Annual General Meeting on May 14, 2025, where all proposed resolutions were passed with significant shareholder support. Key resolutions included the re-election and election of directors, the re-appointment of auditors, and granting mandates to directors for share buybacks and issuance. This successful AGM reflects strong shareholder confidence and positions the company for continued strategic operations and governance.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Announces Change of Registered Office

Cathay Pacific Airways Limited has announced a change in its registered office location to 31st Floor, One Pacific Place, 88 Queensway, Hong Kong, effective from May 16, 2025. This move may reflect strategic administrative adjustments as the company continues to position itself within the competitive aviation market, potentially impacting its operational logistics and stakeholder relations.

Cathay Pacific Reports March 2025 Traffic Growth Amid Network Expansion

Cathay Pacific Airways released its March 2025 traffic figures, highlighting a 19.8% increase in passenger numbers compared to March 2024, and a 25.5% rise in Available Seat Kilometres. The company is expanding its network with new destinations and resuming services, despite facing challenges such as trade tariffs affecting cargo operations. The demand for premium cabins remained strong, driven by major events in Hong Kong.

Cathay Pacific Announces 2025 Annual General Meeting Agenda

Cathay Pacific Airways Limited has announced its annual general meeting for 2025, scheduled to be held on May 14th in Hong Kong. The meeting will address key agenda items including the election or re-election of directors, re-appointment of auditors, and consideration of ordinary resolutions related to share buy-backs and the issuance of additional shares. These resolutions, if approved, could impact the company’s financial strategies and shareholder value, reflecting its ongoing efforts to optimize capital structure and enhance market competitiveness.