--- title: "HSBC Cuts Earnings Forecasts for 3 Major CN Airlines by Avg 12%, Reiterates Buy on CATHAY PAC AIR" type: "News" locale: "en" url: "https://longbridge.com/en/news/292558698.md" description: "HSBC and Morgan Stanley have cut earnings forecasts for China's three major airlines (Air China, China Eastern, China Southern) by an average of 12%, citing weak domestic demand, high fuel costs, and limited pricing power. These stocks underperformed Cathay Pacific this year. While HSBC reiterated a Buy rating on Cathay Pacific expecting booking recovery, it remains cautious on the mainland carriers due to price-sensitive travelers." datetime: "2026-07-14T03:05:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292558698.md) - [en](https://longbridge.com/en/news/292558698.md) - [zh-HK](https://longbridge.com/zh-HK/news/292558698.md) --- # HSBC Cuts Earnings Forecasts for 3 Major CN Airlines by Avg 12%, Reiterates Buy on CATHAY PAC AIR AIR CHINA (00753.HK) \-0.050 (-1.244%) Short selling $11.53M; Ratio 12.232% , CHINA EAST AIR (00670.HK) \-0.090 (-2.922%) Short selling $8.00M; Ratio 14.104% and CHINA SOUTH AIR (01055.HK) \-0.050 (-1.497%) Short selling $2.59M; Ratio 6.730% , the three major airlines of China, have underperformed CATHAY PAC AIR (00293.HK) \-0.090 (-0.684%) Short selling $28.81M; Ratio 32.880% by nearly 50 ppts this year, as analysts expected weak earnings to persist amid soft domestic travel demand in China. Analysts at HSBC said elevated fuel prices remain a drag factor, while airlines have limited pricing power, making it difficult to support margins. Even though fuel prices have eased somewhat, the broker remains cautious on the three airline stocks as Chinese travelers remain highly price-sensitive. HSBC analysts reiterated the Buy rating on CATHAY PAC AIR, expecting a recovery in both short-haul and long-haul bookings. CATHAY PAC AIR opened flat this morning (14th) and once hit a trough of HKD12.98. It last posted at HKD13.08, down 0.61%, with turnover of HKD28.1842 million. Separately, Morgan Stanley analysts last week trimmed net profit forecasts for AIR CHINA, CHINA EAST AIR and CHINA SOUTH AIR by an average of 12%, citing feeble domestic demand. AIR CHINA's share price was under pressure at HKD3.94, down 1.99%; CHINA EAST AIR was last at HKD3, down 2.6%; and CHINA SOUTH AIR was last at HKD3.26, down 2.4%. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-13 16:25.) ### Related Stocks - [601111.CN](https://longbridge.com/en/quote/601111.CN.md) - [600029.CN](https://longbridge.com/en/quote/600029.CN.md) - [00293.HK](https://longbridge.com/en/quote/00293.HK.md) - [00670.HK](https://longbridge.com/en/quote/00670.HK.md) - [01055.HK](https://longbridge.com/en/quote/01055.HK.md) - [00753.HK](https://longbridge.com/en/quote/00753.HK.md) - [600115.CN](https://longbridge.com/en/quote/600115.CN.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) ## Related News & Research - [Cathay Pacific files board, committee and management disclosure list](https://longbridge.com/en/news/294933501.md) - [Airbus reports stable July deliveries, confirms China orders](https://longbridge.com/en/news/295206887.md) - [Swire Pacific cuts exchange price on HK$4.7 billion exchangeable bonds to HK$12.93 per share](https://longbridge.com/en/news/294933969.md) - [Cathay Pacific Flags Price-Sensitive H1 2026 Figures and Investor Caution](https://longbridge.com/en/news/293420899.md) - [Swire Pacific H1 underlying profit rises 43% to HK$7.84 billion; revenue increases 8% to HK$49.45 billion](https://longbridge.com/en/news/295051495.md)