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Chinese Airlines' 2025 Growth Hinges on China's Economy -- Market Talk

Dow Jones01-13

0416 GMT - Chinese airlines' growth in 2025 could be weighed by China's macroeconomic headwinds and elevated jet fuel prices, DBS says in a research note. While DBS foresees stronger earnings for Chinese airlines in 2025 than in 2024, they are unlikely to replicate the post-Covid-reopening supernormal profits achieved by other airlines amid stiff market competition and consumer price sensitivity. "Unless the Chinese government enacts significant stimulus measures, we believe downside risks persist for these carriers," they say. DBS downgrades its ratings on the three major Chinese airlines, Air China, China Eastern Airlines, and China Southern Airlines to hold from buy due to ongoing pricing challenges, macroeconomic uncertainties and as elevated valuations limit further upside. The three airlines' shares are last at HK$4.47, HK$2.33 and HK$3.53, respectively. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

January 12, 2025 23:16 ET (04:16 GMT)

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