Citigroup: Maintaining the “buy” rating for the three major Chinese aviation stocks, Air China is preferred (00753)

The Zhitong Finance App learned that Citibank released a research report stating that the priorities for the three major Chinese airline stocks are Air China (00753), China Eastern Airlines (00670), and China Southern Airlines (01055). Air China's target price was raised from HK$6.4 to HK$6.8; China Eastern Airlines' target price was raised from HK$3.3 to HK$3.61; China Southern's target price was reduced from HK$4.8 to HK$4.6.

Citi said that the reasons for maintaining the “buy” rating for the three major Chinese airline stocks include 2025-2026. Under a more balanced supply and demand outlook, domestic yields are becoming more stable or gradually increasing. Domestic air ticket prices improved year on year during the Labor Day holiday period, then showed relatively stable performance throughout May, indicating that prices have bottomed out and may be ready to rebound. The bank sees this as a positive sign of summer performance. Other reasons include bearish oil prices and relatively stable foreign exchange.