The outlook for the battered Hong Kong carrier has started to turn around following its profit forecast for the first six months of 2023, which will end a run of losses as the airline buckled under the city’s harsh travel restrictions. Cathay’s shares have started to outperform its rival’s in recent weeks, and may rebound further if its earnings — scheduled for Aug 9 — unleashes further positive momentum.
A reversal in the fortunes for shares of Cathay Pacific Airways Ltd. and Singapore Airlines Ltd. may extend further as Hong Kong’s flagship carrier springs back to life after years of pandemic restrictions.
A jump in buy recommendations in July for Cathay has pushed the ratio of bullish views to the most in more than a decade thanks to cheap valuations and the prospect of a return to profit. Meanwhile, a flurry of downgrades since June due to valuation concerns has hurt sentiment for Singapore Airlines.
