0219 GMT - Cathay Pacific Airways' profitability is poised to gain from falling fuel costs, three members of HSBC Global Research say in a research report. Singapore jet fuel price has fallen 19% on year so far in 2Q, the members note. The HSBC oil and gas team forecasts Brent crude oil to average $68.50/bbl in 2025, down 14% from 2024, and projects a further drop to $65/bbl in 2026. Going forward, structural oversupply in the global oil market, exacerbated by OPEC+ production increase, positions airlines to benefit from prolonged fuel price stability. HSBC lifts its 2025-2027 recurring profit estimates for Cathay Pacific by 7%. It raises the stock's rating to hold from reduce and the target price to HK$9.40 from HK$9.20. Shares are 0.1% higher at HK$9.31. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
May 07, 2025 22:19 ET (02:19 GMT)
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