Recent data from the Hong Kong Stock Exchange reveals a significant shareholding movement involving CATHAY PAC AIR (ASX: 00293) on July 3rd.

Shares worth a total of 39 billion Hong Kong dollars were deposited, representing a 4.93% stake in the company.

A major shareholder placed 318 million shares into HSBC Holdings PLC, resulting in a 5.24% increase in the proportion of shares held.

Analysts from UBS have indicated that Cathay Pacific is expected to announce its financial results for the first half of 2026 in August.

Despite substantial rises in fuel costs, the bank anticipates the airline's profitability will remain strong.

This outlook is supported by resilient passenger demand trends and steady performance in the cargo business.

Regarding earnings, UBS projects a half-year net profit of 5.2 billion Hong Kong dollars, marking a 41% increase year-on-year.

The forecast for underlying net profit, which excludes one-off non-operating gains, stands at 3.8 billion Hong Kong dollars, reflecting a modest 3% growth.