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China's ‘Big Three” airline groups to record improved earnings in 2023; short haul fastest to recover
April 5th 2023
HSBC Global Research has raised its profit forecasts for Air China, China Eastern Airlines and China Southern Airlines after noting evidence of a faster than expected domestic recovery and lower fuel costs, among other factors. Read More » “We continue to expect a strong recovery in earnings for the Big Three Chinese airlines and raise our 2023 profit forecasts by 34% on the strength of the domestic market,” HSBC said in an April 2 research note. “Strong passenger demand should be more than enough to offset weakness in the air cargo market. Lower oil prices should boost travel sentiment and lower unit operating costs for the airlines.” Profits are expected to surpass 2015 levels by 2024 with return on equity for the three carriers also tipped to reach 2015 levels by “riding on the tailwinds of resilient domestic travel demand, growing international traffic and lower fuel costs”, the bank note said.
