GLONGHUI, August 24 | Jefferies published a report saying that Cathay Pacific turned a loss into a profit in the first half of the year, faster than expected. It is estimated that profit continued to grow steadily in the second half of the year. Passenger capacity only returned to 70% before the pandemic, and ticket prices are still at a high level. It is estimated that passenger capacity will not fully return to pre-pandemic levels until 2024. The bank estimates that passenger capacity for this year and next two years will return to 55% and 80%, respectively, before the pandemic. However, as passenger capacity increases, ticket prices will be lowered. It is estimated that passenger yield will drop 14% this year and next two years. The bank expects Cathay Pacific to continue to benefit from “retaliatory travel” demand for commercial and leisure travel in the second half of the year. It also expects Air China to resume profits in the second half of the year, driving the Cathay Pacific Joint Venture Division to reverse losses throughout the year. As the number of passengers carried in July was slightly lower than the bank's original expectations, Cathay Pacific's target price was slightly lowered from 10.7 yuan to 10.5 yuan, and the rating was “buy.”