UBS Warburg: lower Cathay Pacific target price if labor trouble cannot be solved

UBS Warburg predicted in a statement that if Cathay Pacific Airways (0293) agrees to increase pilots salary according to the demand of pilots, the overall salary expense would soar 7% to HK$320 mln; and if the salary is just lifted by 9%, the expense would stand at HK$160 mln. The fund house has downgraded the estimation forecast of Cathay Pacific Airways and maintained its target price at HK$9.75, which would be reduced if an agreement cannot be reached between the labor and capital sides in 10 days.

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