Cathay Pacific is positioned for a boost to earnings as travel demand continues to recover, particularly in the premium segment, a new report from HSBC said.
“High-yield business class demand is improving, underpinned by Hong Kong's economic recovery, including a resurgent property market and booming IPO pipeline," said HSBC's global head of transport & logistics research Parash Jain.
He added that weakening US dollar and Hong Kong dollar should contribute to a boost in tourism.
The bank has resumed coverage on the airline with a buy rating.
HSBC also highlighted the airline’s share buyback of Qatar Airways’ 9.56% stake for about HKD6.97 billion ($891 million), which is expected to lift earnings per share by 6%.