JPMorgan released a research report indicating that Cathay Pacific Airways is set to announce its full-year results today. The firm maintained an "overweight" rating on both Cathay Pacific and Singapore Airlines, with target prices set at HK$18 and S$8.4, respectively. Tensions involving Iran are impacting the global aviation industry, prompting travelers and cargo shippers to shift routes through hubs such as Singapore, Hong Kong, and other Asian locations. The report noted that while share prices of both Cathay Pacific and Singapore Airlines have declined, the two carriers are expected to outperform other global peers due to their strong balance sheets, prudent fuel hedging, flexible route networks, and unique access to key flight corridors. JPMorgan believes that high ticket prices and increased cargo yields will support both companies in the short term, though these benefits will be partly offset by rising oil prices. Although their fuel hedging provides a short-term buffer, it remains lower than that of European competitors, limiting margin protection in a volatile fuel price environment. The bank projects an 18% year-on-year increase in Cathay Pacific's operating profit for the second half of 2025, while net profit is expected to remain largely flat, as resilient passenger and cargo demand is counterbalanced by losses from HK Express and a one-time HK$900 million supplier settlement gain.