Cathay Pacific's First-Half Results in Line; Raise Fair Value Estimate to HKD 8

Cathay Pacific’s first-half loss of HKD 5.3 billion was expected given passenger capacity was only 2% of 2019 levels from January to April. Nonetheless, passenger load factor rebounded sharply to 59.2% from 36.8% in the second half of 2021, and passenger yield further climbed to a record high, suggesting strong passenger demand. As the Hong Kong government further eases COVID-19 restrictions, we expect a meaningful increase in passenger capacity and traffic in the second half.