DBS has issued a research note indicating a deteriorating outlook for AIR CHINA (00753). The report anticipates significant losses for the 2026 fiscal year, with a recovery in profitability now expected to be delayed until 2027. Consequently, downside risks to earnings estimates and valuation remain elevated, which are likely to continue weighing on the stock's performance. This is primarily attributed to a sharp increase in jet fuel prices, with fare hikes proving insufficient to offset the rising costs. DBS has maintained its "Sell" rating on the H-shares of Air China and reduced the target price from HK$4.9 to HK$4.1. For the A-shares of Air China Limited (601111.SH), DBS assigns a "Hold" rating with a target price of 6.5 yuan.