0646 GMT - China's three major airlines are expected to post sequentially weaker earnings for the traditional off-season in 4Q, HSBC Global Research analysts say in a note, pointing to weaker demand and lower airfares following the National Day holiday. HSBC widens its 2023 loss forecasts for Air China, China Eastern and China Southern to take into account softer travel demand and lower passenger yields in 4Q. However, HSBC thinks the airlines could post record profits for 2024 on lower oil prices, easing yuan depreciation pressure and the restoration of international routes, particularly the ramp-up of China-U.S. flights. HSBC has buy ratings on the Hong Kong-listed shares of Air China and China Eastern, and rates China Southern's H-shares at hold. (hoishan.chan@wsj.com)
(END) Dow Jones Newswires
November 01, 2023 02:46 ET (06:46 GMT)
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