0818 GMT - Chinese airlines' profitability will likely remain weak, given structural yield pressure driven by airfare wars, DBS Group Research team writes in a note. Also, demand is skewed toward lower-yield leisure travel, with a slow rebound in corporate travel, the analysts say. Air China, China Eastern and China Southern posted 1H net losses as weak passenger yields and higher ex-fuel unit costs offset savings from lower fuel prices, they say. Analysts will likely lower the airlines' earnings forecasts, as current consensus estimates appear overly optimistic and would be an overhang on share prices, DBS says. The launch of new high-speed trains in 2026 will further extend rail's competitive reach and pressure the airlines' short-haul yields, the analysts add. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

September 02, 2025 04:18 ET (08:18 GMT)

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