JPMorgan released a research report stating that it has raised its profit forecast for Cathay Pacific Aviation (00293) for the fiscal year 2024-25 by an average of about 12%, which makes the bank's expected profit level more than 5% higher than consensus. It also introduced the expected fiscal year 2026 and lowered the target price from HKD11.2 to HKD10, while maintaining its "shareholding" rating.

The bank believes that Cathay Pacific Aviation's strong profit trend and cash generation ability seem to be overlooked after the pandemic. The demand for air travel remains strong, and passenger revenue is expected to rise in 2024. Freight revenue has slightly fallen from the previous quarter, but it is still far higher than the pre-pandemic level, mainly driven by strong demand from cross-border e-commerce. In addition, the balance sheet repair work has entered the right track, and preferred shares will be redeemed in full before the end of July.