According to the Zhitong Finance APP, Bank of America Securities released a research report stating that the performance of four domestic airlines in the third quarter showed divergence. China Eastern Airlines (00670) had the strongest net profit growth, increasing by 34% year-on-year; followed by China Southern Airlines (01055), which rose by 20% year-on-year. In contrast, Spring Airlines (601021.SH) and Air China (00753) saw net profits decline by 6% and 11%, respectively. During the period, revenue per available seat kilometer exceeded expectations, with stable data in September. The bank expects that the decline in fuel costs will benefit the overall cost structure, while the unit cost performance excluding fuel varies, with Air China relatively lagging in cost optimization.
The bank adjusted Air China's 2025 profit forecast from a loss of 54 million yuan to a profit of 473 million yuan, and lowered the forecasts for 2026 and 2027 by 5.7% and 4.2%, respectively. Additionally, it reduced the profit forecast for China Southern Airlines in 2025 by 54%, while raising the forecasts for 2026 and 2027 by 16% and 14%, respectively; the forecasts for China Eastern Airlines from 2025 to 2027 were raised by 56%, 0.8%, and 0.7%. As for Spring Airlines, the 2025 profit forecast was lowered by 2.7%, while the forecasts for 2026 and 2027 remained unchanged.
The bank reiterated its &#34;underperform&#34; rating for Air China, China Eastern Airlines, and China Southern Airlines, as domestic ticket prices still face pressure, posing downside risks to profits in 2025 and 2026; at the same time, it reaffirmed its &#34;buy&#34; rating for Spring Airlines due to its cost leadership position and expected stable growth from 2025 to 2026

600029

01055

600115

00670

601111

00753

Bank of America Securities released a research report stating that domestic air ticket prices are under pressure, and it is expected that Air China, China Eastern Airlines, and China Southern Airlines H shares will "underperform the market." The firm maintains a "underperform the market" rating on Air China, China Eastern Airlines, and China Southern Airlines due to the impact of ticket price pressure on profits in 2025 and 2026. At the same time, it reiterated a "buy" rating on Spring Airlines due to its cost advantages and stable growth expectations. The profit forecast for Air China in 2025 has been adjusted from a loss to a profit, while the profit forecast for China Southern Airlines has been lowered by 54%

Zhitong

CHINA SOUTH AIR

CHINA EAST AIR

Air China

AIR CHINA

Bank of America Securities: Domestic air ticket prices are expected to be under pressure affecting profitability, and the three major airlines' H shares are expected to "underperform the market."