0937 GMT - Demand concerns are mounting for Chinese airlines, analysts at DBS Group Research write in a note. Air China, China Eastern Airlines and China Southern Airlines continued to post losses in 1Q, with operating margins squeezed by pricing and cost pressures, DBS says. Higher consumer price sensitivity, heightened competition with high-speed rail and a depreciating yuan affected margins, DBS adds. While all three are expected to return to profitability in 2025, ongoing macroeconomic uncertainties and pricing pressures remain key concerns, with U.S.-China trade tensions likely to affect China Southern Airlines the most due to its high exposure to the cargo segment, DBS says. "Unless supply-demand conditions strengthen meaningfully to restore pricing power, profitability rebound is likely to remain muted" for the three carriers, DBS says. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
May 05, 2025 05:38 ET (09:38 GMT)
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