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(Bloomberg) -- 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.

Bearish bets on Cathay Pacific have risen to the highest level since February 2023 in the wake of its first-half results, which showed a decline in net income on lower passenger yields and higher costs. It’s not alone, as industry earnings have been suffering worldwide due to staff shortages and carriers’ overly ambitious growth plans.

“Negative earnings growth is not encouraging,” Morgan Stanley analysts including Qianlei Fan wrote in a note, adding that “macro headwinds” remain for the second half. Fan has an equal-weight rating on shares of Cathay Pacific, which are down 5% so far this year.