Airline Cathay Pacific (HK50:0293.HK) saw its shares lose 10% as it offered a bearish outlook for fares and cargo.
0293.HK – Daily Chart
Cathay shares have dropped sharply after hovering near the yearly highs at $12.00. The bearish close could see an imminent test of the uptrend support near $10.50.
Cathay reported a 1% increase in first-half profit to HK$3.65 billion due to a strong jump in passenger numbers, lower fuel prices and steady cargo income. But its airfares fell 12.3% at its leading brand and 21.6% at the low-cost carrier HK Express during the period as Cathay and its rivals upped capacity.
“HK Express continues to face short-term challenges,” Cathay Chairman Patrick Healy said of the budget airline. The airline posted a HK$524 million first-half loss, with management committed to a long-term path to profitability.
Shares in Cathay fell to their lowest level since July 4, 2025, and suffered their most significant one-day percentage decline since November 2008. The results were in line with analysts’ expectations, but the HK Express arm disappointed investors.
Yields at Asia’s airlines are moving lower from post-lockdown record highs as carriers continue to add more capacity and raise competition. The Asian region had been slower to catch up to the rest of the world due to the extended lockdown period.
Other airlines reporting recently showed Singapore Airlines losing 3.5% on fares, while Scoot lost 4.7%.
Cathay is still one of Asia’s largest cargo carriers and has been boosted in recent years by e-commerce sales from China. But management warned that the cargo market faces uncertainty due to Donald Trump’s tariffs, with a duty-free exemption on low-cost packages being cancelled.
