Chinese Airlines Downtrend in Passenger Yields May Persist -- Market Talk

Dow Jones09-04

0631 GMT - China's airline industry appears to lack tailwinds to reverse the downtrend in passenger yields, says Cheng Wang, equity analyst at Morningstar in a note. Passenger yields, or revenue per passenger per kilometer flown, declined more than expected in 1H across Air China, China Southern Airlines, and China Eastern Airlines. The yields have been on a downward trend for over a decade, the analyst notes. Cautious consumer travel spending amid macroeconomic uncertainties and airlines losing customers to high-speed rail will likely persist and weigh on earnings, the analyst adds. Morningstar cuts its fair value estimates for the three airlines' A-shares and H-shares by 31%-40% after factoring in lower passenger yields and higher jet fuel cost assumptions for 2024. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

September 04, 2024 02:31 ET (06:31 GMT)

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Cautious consumer travel spending amid macroeconomic uncertainties and airlines losing customers to high-speed rail will likely persist and weigh on earnings, the analyst adds. Morningstar cuts its fair value estimates for the three airlines' A-shares and H-shares by 31%-40% after factoring in lower passenger yields and higher jet fuel cost assumptions for 2024. 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Passenger yields, or revenue per ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK0188","symbol_name":"融资融券","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2464734818","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2464734818","pubTimestamp":1725431460,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0631 GMT - China's airline industry appears to lack tailwinds to reverse the downtrend in passenger yields, says Cheng Wang, equity analyst at Morningstar in a note. Passenger yields, or revenue per passenger per kilometer flown, declined more than expected in 1H across Air China, China Southern Airlines, and China Eastern Airlines. The yields have been on a downward trend for over a decade, the analyst notes. Cautious consumer travel spending amid macroeconomic uncertainties and airlines losing customers to high-speed rail will likely persist and weigh on earnings, the analyst adds. Morningstar cuts its fair value estimates for the three airlines' A-shares and H-shares by 31%-40% after factoring in lower passenger yields and higher jet fuel cost assumptions for 2024. 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Passenger yields, or revenue per passenger per kilometer flown, declined more than expected in 1H across Air China, China Southern Airlines, and China Eastern Airlines. The yields have been on a downward trend for over a decade, the analyst notes. Cautious consumer travel spending amid macroeconomic uncertainties and airlines losing customers to high-speed rail will likely persist and weigh on earnings, the analyst adds. Morningstar cuts its fair value estimates for the three airlines' A-shares and H-shares by 31%-40% after factoring in lower passenger yields and higher jet fuel cost assumptions for 2024. 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