--- title: "\"Big Banks\" Bank of America Securities lowers target prices for the three major mainland airlines, expecting challenges from rising fuel prices this year" type: "News" locale: "en" url: "https://longbridge.com/en/news/282129984.md" description: "Bank of America Securities has lowered the target prices for the three major airlines in mainland China, expecting Air China, China Southern Airlines, and China Eastern Airlines to face challenges from rising fuel prices. Although profits are expected to grow in the first quarter, the increase in fuel surcharges will affect ticket prices, leading to net losses of RMB 5.7 billion, RMB 7.1 billion, and RMB 3.8 billion for Air China, China Southern Airlines, and China Eastern Airlines, respectively. The target price for Air China has been reduced to RMB 9.1, for China Southern Airlines to RMB 6.9, and for China Eastern Airlines to RMB 3.8" datetime: "2026-04-09T03:27:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282129984.md) - [en](https://longbridge.com/en/news/282129984.md) - [zh-HK](https://longbridge.com/zh-HK/news/282129984.md) --- # "Big Banks" Bank of America Securities lowers target prices for the three major mainland airlines, expecting challenges from rising fuel prices this year According to a research report by Bank of America Securities, it is expected that the three major airlines in mainland China, Air China (00753.HK), China Southern Airlines (01055.HK), and China Eastern Airlines (00670.HK), will record year-on-year profit growth in the first quarter of this year. However, in April, domestic aviation fuel prices in China surged by 73% year-on-year, leading to an increase in domestic fuel surcharges, while international fuel surcharges are determined by each airline. Although fuel surcharges can partially offset the rise in fuel prices, leisure travelers are relatively sensitive to prices, and considering the competition from high-speed rail, there is a risk to ticket prices excluding fuel surcharges. However, under the circumstances of limited capacity growth and rising cancellation rates, it is estimated that the room for decline in ticket prices excluding fuel surcharges is limited. Therefore, the firm has lowered its net profit forecasts for the three major airlines in mainland China, expecting Air China, China Eastern Airlines, and China Southern Airlines to record net losses of RMB 5.7 billion, RMB 7.1 billion, and RMB 3.8 billion, respectively. It reaffirms a "Buy" rating for Air China, with the A-share target price lowered from RMB 11.35 to RMB 9.1, and the H-share target price lowered from HKD 8.3 to HKD 6.7. At the same time, the firm reaffirms a "Neutral" rating for China Southern Airlines, as its current valuation reasonably reflects the profit recovery from 2027 to 2028; the A-share target price for China Southern Airlines is lowered from RMB 8.11 to RMB 6.9, and the H-share target price is lowered from HKD 5.92 to HKD 4.9. Additionally, the firm also reaffirms a "Underperform" rating for China Eastern Airlines, believing that the current valuation is too high and exaggerates its profit and return on equity recovery; the A-share target price for China Eastern Airlines is lowered from RMB 3.9 to RMB 3.8, and the H-share target price is lowered from HKD 2.9 to HKD 2.7 ### Related Stocks - [00753.HK](https://longbridge.com/en/quote/00753.HK.md) - [600029.CN](https://longbridge.com/en/quote/600029.CN.md) - [01055.HK](https://longbridge.com/en/quote/01055.HK.md) - [601111.CN](https://longbridge.com/en/quote/601111.CN.md) - [600115.CN](https://longbridge.com/en/quote/600115.CN.md) - [00670.HK](https://longbridge.com/en/quote/00670.HK.md) ## Related News & Research - [Chinese airlines to raise domestic flight fuel surcharges from May 16, Yicai reports](https://longbridge.com/en/news/286067901.md) - [Air China Adds Board Election Proposal to 2026 AGM Agenda](https://longbridge.com/en/news/286110283.md) - [China Southern Airlines Calls 2026 AGM, Flags Losses and Seeks Share Issue Mandate](https://longbridge.com/en/news/285554083.md) - [US report China Eastern jet fuel supply was off ahead of deadly 2022 crash](https://longbridge.com/en/news/285445514.md) - [DBS Keeps Their Sell Rating on China Eastern Airlines Corporation Limited Class H (0670)](https://longbridge.com/en/news/284782188.md)