By Kimberley Kao

Cathay Pacific is scheduled to report results for the second half of 2024 on Wednesday. Here is what you need to know:

NET PROFIT: The Hong Kong carrier is expected to post a 14% decline in net profit to 4.73 billion Hong Kong dollars, equivalent to US$608.9 million, according to the consensus estimate of analysts polled by Visible Alpha. That would compare with HK$5.52 billion a year earlier.

REVENUE: Revenue is estimated to rise 8.05% to HK$54.99 billion, according to Visible Alpha.

Cathay Pacific's shares rose 19% in the second half of 2024 and have gained about 16.5% this year. The stock this week hit its highest level since mid-2019. The company's positive guidance in January and repurchase of convertible bonds have contributed to its share-price momentum, some analysts have said.

WHAT TO WATCH:

--PASSENGER YIELD: Long-haul passenger yields are easing from elevated levels as capacity continues to be added to the industry, while short-haul yields have normalized due to strong competition, Citi Research analysts said in a January note. Long-haul yields in 2025 will likely face downside risk due to the global capacity recovery, Daiwa's Kelvin Lau and Frank Yip said.

--OUTLOOK: For 2025, Cathay Pacific could have a mixed business outlook and limited share-price catalysts, Daiwa's Lau and Yip said, noting that the airline's shares have rallied around 30% since mid-November. Cathay's air-cargo business this year will likely be driven by cross-border e-commerce demand, though this could change radically depending on trade policies in Europe and the U.S., the analysts wrote in a note. Cathay's plan to expand its flight network and facility investments could also increase expenses this year, which would weigh on its operating margin, they said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

March 11, 2025 01:33 ET (05:33 GMT)

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