Cathay Becomes World’s Most Shorted Airline Stock on Profit Woes

  • Short interest at highest on Bloomberg World Airlines Index
  • Carrier faces ‘macro headwinds’ in second half: Morgan Stanley
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Cathay Pacific Airways Ltd. is now the world’s most-shorted major airline stock, as the industry struggles to improve profits even amid a rebound in global tourism.

Short interest in shares of the Hong Kong flagship carrier has climbed to more than 25% of the free float, according to S&P Global Inc. data as of August 12. That tops the 30-member Bloomberg World Airlines Index, more than a percentage point above the level for American Airlines Group Inc.