BofA Securities: Domestic Airfare Pressure to Weigh on Earnings, Rates Big Three Chinese Airlines' H Shares "Underperform"

Stock News

Nov 04

BofA Securities released a research report noting divergent Q3 performance among four mainland Chinese airlines. CHINA EAST AIR (00670) posted the strongest net profit growth at 34% YoY, followed by CHINA SOUTH AIR (01055) with a 20% increase. However, Spring Airlines (601021.SH) and AIR CHINA (00753) saw net profits decline by 6% and 11%, respectively. Revenue per available seat kilometer exceeded expectations during the period, with September data showing resilience.

The firm expects lower fuel costs to benefit overall cost structures, though non-fuel unit costs varied, with AIR CHINA lagging in cost optimization. BofA revised AIR CHINA's 2025 earnings forecast from a loss of RMB 54 million to a profit of RMB 473 million but cut 2026 and 2027 estimates by 5.7% and 4.2%. Meanwhile, CHINA SOUTH AIR's 2025 earnings forecast was slashed by 54%, while 2026 and 2027 projections were raised by 16% and 14%. CHINA EAST AIR's 2025–2027 forecasts were lifted by 56%, 0.8%, and 0.7%. Spring Airlines saw a 2.7% cut to its 2025 forecast, with 2026–2027 estimates unchanged.

BofA reiterated "Underperform" ratings for AIR CHINA, CHINA EAST AIR, and CHINA SOUTH AIR due to persistent domestic fare pressures posing downside risks to 2025–2026 earnings. It maintained a "Buy" on Spring Airlines, citing its cost leadership and steady growth expectations for 2025–2026.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

1
2
3
4
5
6
7
8
9
10

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www-web.itiger.com/news/1146758619"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"1146758619\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/1146758619?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-11-04 15:58","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1146758619","market":"sg","top_or_hot":-1,"title":"BofA Securities: Domestic Airfare Pressure to Weigh on Earnings, Rates Big Three Chinese Airlines' H Shares \"Underperform\"","media":"Stock News","content":"<p>BofA Securities released a research report noting divergent Q3 performance among four mainland Chinese airlines. CHINA EAST AIR (00670) posted the strongest net profit growth at 34% YoY, followed by CHINA SOUTH AIR (01055) with a 20% increase. However, Spring Airlines (601021.SH) and AIR CHINA (00753) saw net profits decline by 6% and 11%, respectively. Revenue per available seat kilometer exceeded expectations during the period, with September data showing resilience.</p>\n<p>The firm expects lower fuel costs to benefit overall cost structures, though non-fuel unit costs varied, with AIR CHINA lagging in cost optimization. BofA revised AIR CHINA's 2025 earnings forecast from a loss of RMB 54 million to a profit of RMB 473 million but cut 2026 and 2027 estimates by 5.7% and 4.2%. Meanwhile, CHINA SOUTH AIR's 2025 earnings forecast was slashed by 54%, while 2026 and 2027 projections were raised by 16% and 14%. CHINA EAST AIR's 2025–2027 forecasts were lifted by 56%, 0.8%, and 0.7%. Spring Airlines saw a 2.7% cut to its 2025 forecast, with 2026–2027 estimates unchanged.</p>\n<p>BofA reiterated \"Underperform\" ratings for AIR CHINA, CHINA EAST AIR, and CHINA SOUTH AIR due to persistent domestic fare pressures posing downside risks to 2025–2026 earnings. It maintained a \"Buy\" on Spring Airlines, citing its cost leadership and steady growth expectations for 2025–2026.</p>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BofA Securities: Domestic Airfare Pressure to Weigh on Earnings, Rates Big Three Chinese Airlines' H Shares \"Underperform\"</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBofA Securities: Domestic Airfare Pressure to Weigh on Earnings, Rates Big Three Chinese Airlines' H Shares \"Underperform\"\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036600163\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Stock News </p>\n<p class=\"h-time\">2025-11-04 15:58</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>BofA Securities released a research report noting divergent Q3 performance among four mainland Chinese airlines. CHINA EAST AIR (00670) posted the strongest net profit growth at 34% YoY, followed by CHINA SOUTH AIR (01055) with a 20% increase. However, Spring Airlines (601021.SH) and AIR CHINA (00753) saw net profits decline by 6% and 11%, respectively. Revenue per available seat kilometer exceeded expectations during the period, with September data showing resilience.</p>\n<p>The firm expects lower fuel costs to benefit overall cost structures, though non-fuel unit costs varied, with AIR CHINA lagging in cost optimization. BofA revised AIR CHINA's 2025 earnings forecast from a loss of RMB 54 million to a profit of RMB 473 million but cut 2026 and 2027 estimates by 5.7% and 4.2%. Meanwhile, CHINA SOUTH AIR's 2025 earnings forecast was slashed by 54%, while 2026 and 2027 projections were raised by 16% and 14%. CHINA EAST AIR's 2025–2027 forecasts were lifted by 56%, 0.8%, and 0.7%. Spring Airlines saw a 2.7% cut to its 2025 forecast, with 2026–2027 estimates unchanged.</p>\n<p>BofA reiterated \"Underperform\" ratings for AIR CHINA, CHINA EAST AIR, and CHINA SOUTH AIR due to persistent domestic fare pressures posing downside risks to 2025–2026 earnings. It maintained a \"Buy\" on Spring Airlines, citing its cost leadership and steady growth expectations for 2025–2026.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1123","symbol_name":"航空公司","start_time":0,"source_url":"","article_id":"1146758619","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1146758619","pubTimestamp":1762243104,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"BofA Securities released a research report noting divergent Q3 performance among four mainland Chinese airlines. CHINA EAST AIR (00670) posted the strongest net profit growth at 34% YoY, followed by...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"159231":"航空","161027":"证券","BK1123":"航空公司","01055":"中国南方航空股份","00753":"中国国航","00670":"中国东方航空股份","BK1561":"航空股","BK1514":"人民币升值概念","BK1505":"一带一路"},"translate_title":"美银证券：国内机票压力拖累盈利，评级中国三大航H股“表现不佳”","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"159231":1,"161027":1,"00670":1,"00753":1,"01055":1},"content_text":"BofA Securities released a research report noting divergent Q3 performance among four mainland Chinese airlines. CHINA EAST AIR (00670) posted the strongest net profit growth at 34% YoY, followed by CHINA SOUTH AIR (01055) with a 20% increase. However, Spring Airlines (601021.SH) and AIR CHINA (00753) saw net profits decline by 6% and 11%, respectively. Revenue per available seat kilometer exceeded expectations during the period, with September data showing resilience.\nThe firm expects lower fuel costs to benefit overall cost structures, though non-fuel unit costs varied, with AIR CHINA lagging in cost optimization. BofA revised AIR CHINA's 2025 earnings forecast from a loss of RMB 54 million to a profit of RMB 473 million but cut 2026 and 2027 estimates by 5.7% and 4.2%. Meanwhile, CHINA SOUTH AIR's 2025 earnings forecast was slashed by 54%, while 2026 and 2027 projections were raised by 16% and 14%. CHINA EAST AIR's 2025–2027 forecasts were lifted by 56%, 0.8%, and 0.7%. Spring Airlines saw a 2.7% cut to its 2025 forecast, with 2026–2027 estimates unchanged.\nBofA reiterated \"Underperform\" ratings for AIR CHINA, CHINA EAST AIR, and CHINA SOUTH AIR due to persistent domestic fare pressures posing downside risks to 2025–2026 earnings. It maintained a \"Buy\" on Spring Airlines, citing its cost leadership and steady growth expectations for 2025–2026.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}