G Sachs Maintains Optimistic Outlook on Airline Stocks, Spotlights AIR CHINA as a Top Choice
Goldman Sachs on Chinese Airlines: The firm projects increased international travel demand for Chinese airlines next year due to more countries offering visa-free access and a potential shortage of available seats, leading to higher ticket prices.
Positive Outlook on Airline Stocks: Goldman Sachs maintains a positive outlook on airline stocks, particularly highlighting AIR CHINA with a Buy rating, despite monitoring travel risks related to Japan.
Crude Oil Tanker Sector: The broker is optimistic about crude oil tanker companies, expecting spot freight rates to rise through 2026, and has given COSCO SHIP ENGY a Buy rating due to its strong position in the market.
Bearish on Container Shipping: In contrast, Goldman Sachs has a negative outlook on container shipping companies, citing an increase in new vessel orders that could lead to a prolonged downturn, rating COSCO SHIP HOLD as Sell.
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M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
M Stanley Report: CN Tourism Sector Shows Robust Recovery; AIR CHINA, HWORLD-S, Atour Lifestyle, and Others Favorably Rated
Tourism Industry Growth: The tourism sector is increasingly aligned with China's goals for enhancing well-being and happiness, with projections indicating domestic tourism consumption will rise from 13% in 2023 to 18% by 2030, contributing significantly to GDP growth.
Revenue Projections: Morgan Stanley forecasts that the tourism industry's revenue will reach RMB12 trillion by 2030, with its GDP contribution increasing from 4.8% in 2024 to 6.7%.
Investment Recommendations: Investors are encouraged to capitalize on the growing tourism demand, with Morgan Stanley highlighting five key stocks, including AIR CHINA and TRIP.COM-S, as potential beneficiaries.
Market Insights: The report also notes the short selling activity and market performance of the recommended stocks, indicating investor sentiment and market dynamics within the tourism sector.
AIR CHINA to Offer Over 70,000 Passenger Flights for 2026 Spring Festival Travel Surge
Capacity Investment: AIR CHINA plans to upgrade its capacity for the 2026 Spring Festival travel rush, increasing its registered aircraft by 25 year-on-year and operating over 70,000 passenger flights, a 10.1% increase from the previous year.
Flight Schedule: The airline will average approximately 1,800 flights daily, which is an increase of 160 flights year-on-year, focusing on key routes in major city clusters across China.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
Air China Introduces Nonstop Flight Service Between Beijing and Abu Dhabi
Inaugural Flight: AIR CHINA successfully completed its inaugural direct flight from Beijing to Abu Dhabi, marking the first direct connection between the capitals of China and the UAE operated by a Chinese airline.
New Route Details: The new route, launched in 2026, operates with Boeing 787 aircraft and offers four direct flights per week between the two cities.
BofAS Raises Price Targets for Three Major Chinese Airlines and Upgrades AIR CHINA to Buy
Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.
Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).
M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
M Stanley Report: CN Tourism Sector Shows Robust Recovery; AIR CHINA, HWORLD-S, Atour Lifestyle, and Others Favorably Rated
Tourism Industry Growth: The tourism sector is increasingly aligned with China's goals for enhancing well-being and happiness, with projections indicating domestic tourism consumption will rise from 13% in 2023 to 18% by 2030, contributing significantly to GDP growth.
Revenue Projections: Morgan Stanley forecasts that the tourism industry's revenue will reach RMB12 trillion by 2030, with its GDP contribution increasing from 4.8% in 2024 to 6.7%.
Investment Recommendations: Investors are encouraged to capitalize on the growing tourism demand, with Morgan Stanley highlighting five key stocks, including AIR CHINA and TRIP.COM-S, as potential beneficiaries.
Market Insights: The report also notes the short selling activity and market performance of the recommended stocks, indicating investor sentiment and market dynamics within the tourism sector.
AIR CHINA to Offer Over 70,000 Passenger Flights for 2026 Spring Festival Travel Surge
Capacity Investment: AIR CHINA plans to upgrade its capacity for the 2026 Spring Festival travel rush, increasing its registered aircraft by 25 year-on-year and operating over 70,000 passenger flights, a 10.1% increase from the previous year.
Flight Schedule: The airline will average approximately 1,800 flights daily, which is an increase of 160 flights year-on-year, focusing on key routes in major city clusters across China.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
Air China Introduces Nonstop Flight Service Between Beijing and Abu Dhabi
Inaugural Flight: AIR CHINA successfully completed its inaugural direct flight from Beijing to Abu Dhabi, marking the first direct connection between the capitals of China and the UAE operated by a Chinese airline.
New Route Details: The new route, launched in 2026, operates with Boeing 787 aircraft and offers four direct flights per week between the two cities.
BofAS Raises Price Targets for Three Major Chinese Airlines and Upgrades AIR CHINA to Buy
Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.
Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).
