[ET Net News Agency, 18 March 2020] Jefferies Research lowered its target price for
China Eastern Airlines (CEA)(00670) to HK$3.2 from HK$5.8 and downgraded its rating to
"hold" from "buy".
The research house expects passenger yield to decline by 13.1% in 2020, which is similar
to the pax yield decline during SARS. Jefferies estimated domestic and international
yields for CEA to decline by 12% and 23%.
It sees passenger yield to rebound 12.9% in 2021 as Jefferies expects pent-up demand to
drive yields. It estimated 2020 to be loss-making for CEA, driven by weak pax demand and
yields. (KL)