Hong Kong carrier Cathay Pacific's Middle East suspension may be offset by European expansion, experts say, but cargo business could be affected by war-related fuel and insurance price increases.

Hong Kong flag carrier Cathay Pacific Airways’ extended suspension of its Middle Eastern flights is likely to have a limited financial impact on its passenger operations as its expanded European services should help offset losses, aviation experts have said. But they warned of broader effects on its cargo business, given the loss of the Middle East as a historically cost-effective transit route and the upwards pressure on fuel and insurance prices due to the war. The airline announced on Tuesday...