To The Moon

Bank of America Securities released a research report expressing a positive outlook for Asia-Pacific airlines in 2026. The report forecasts that airline profits in 2026 will be supported by several factors, including sustained higher airfares over a longer period due to constrained supply growth and healthy demand, coupled with improved cargo fundamentals and potential benefits from an oil supply surplus. The firm has raised its earnings per share (EPS) estimates for Asia-Pacific airlines for 2025-2027 by an average of 22%, reflecting an improved outlook for both passenger and cargo unit revenues, with the most significant increases applied to mainland Chinese carriers. Consequently, the bank has raised its price targets for Asia-Pacific airlines by an average of 30%. The price target for China Eastern Airlines Corporation Limited (00670) was raised from HK$2 to HK$2.9, though its rating remains Underperform. The price target for China Southern Airlines Company Limited (01055) was increased from HK$3.1 to HK$5.92, and its rating was upgraded from Underperform to Neutral. The price target for AIR CHINA (00753) was lifted significantly from HK$4.2 to HK$8.3, and its rating was upgraded directly from Underperform to Buy.