0340 GMT - Chinese airlines face strong travel demand leading up to the Lunar New Year holiday amid soft airfares, HSBC analysts say. They note booking volumes for long-distance destinations have risen by high double digits on year, citing Trip.com data. HSBC projects the three major Chinese airlines, Air China, China Southern Airlines and China Eastern Airlines, will report profit for 2025, but notes it is less bullish than consensus given headwinds. HSBC reckons that any push by airlines to raise prices could hurt travel momentum due to subdued Chinese consumer sentiment. It also thinks high-speed rail poses intense competition to air travel, while yuan weakness against the dollar may be another downside risk. In the near term, rising oil prices could weigh on airlines' 1Q earnings despite booming holiday traffic, HSBC adds. (hoishan.chan@wsj.com)
(END) Dow Jones Newswires
January 22, 2025 22:40 ET (03:40 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.