[ET Net News Agency, 11 September 2019] BofA Merrill Lynch lowered its target price for
Air China (00753) to HK$8.1 from HK$8.7 and maintained its "buy" rating.
The research house said Air China's 1H ASK (available seat kilometers) trend: domestic
+3%, international +6%, regional +7%. This is below original guidance due to 737 Max, both
Beijing and Tianjin had runway maintenance and special events in 1H.
As for the 2H outlook, overall policy tone is still to control capacity, so no big
increase in supply. 2H ASK guidance: domestic: +10%, international +1% and regional +7%.
International growth will be weak because of a high base last year - mainly adding in
Japan/Korea this year, Europe +7%, while the US will see a mild decline.
More narrowbody delivering in 2019-20, this is consistent with the route network. That
said, Air China still has more widebody than other airlines overall, BofAML noted. (KL)
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00753 AIR CHINA
Nominal 
3.580 -0.150 (-4.021%) Research Report
11/09/2019 11:26
{I-bank focus}BofAML lowers Air China (00753) to HK$8.1
| Remark: | Real time quote last updated: 16/04/2024 17:07 |
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