0544 GMT - Chinese airlines are likely to face sharp losses in 2026, says DBS Group Research's Jason Sum in a commentary. Fare increases are likely insufficient to offset higher fuel costs for Air China, China Southern Airlines and China Eastern Airlines, the analyst adds. Their stock valuations remain stretched despite steep share-price falls, he says. DBS cuts its target price for Air China's Hong Kong shares to HK$4.10 from HK$4.90, while trimming its target price on China Southern to HK$3.40 from HK$3.60. It maintains its target price for China Eastern at HK$2.90. DBS maintains sell ratings on the Hong Kong-listed shares of the three airlines. Air China, China Southern and China Eastern shares are at HK$5.05, HK$4.27 and HK$4.01, respectively. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

April 08, 2026 01:44 ET (05:44 GMT)

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