Broker: DBS
Date of Report: 10 April 2026

Excerpt from DBS report.

Report Summary

• Actionable Calls:
  • SELL: China Eastern Airlines Corp Ltd (670_HK_Equity), Air China Ltd (753_HK_Equity), China Southern Airlines Co Ltd (1055_HK_Equity)
  • HOLD: Cathay Pacific Airways Ltd (293_HK_Equity), Singapore Airlines Ltd (SIA_SP_Equity), China Southern Airlines Co Ltd (600029_CH_Equity), China Eastern Airlines Corp Ltd (600115_CH_Equity), Air China Ltd (601111_CH_Equity)
• Key Ideas:
  • APAC airlines are under margin pressure due to persistently high jet fuel prices and ongoing disruptions to refining capacity. This is a margin-driven shock, not a demand downturn, as demand remains resilient but earnings will be pressured into 2Q–3Q26.
  • US and European airlines are preferred over APAC airlines; the risk/reward for APAC airlines remains unattractive.
  • Maintain HOLD on Singapore Airlines and Cathay Pacific; downgrade the three Chinese state-owned carriers to SELL due to persistent yield challenges and delayed profitability.
• Implications:
  • Investors should reduce exposure to Chinese state-owned airlines given the downgrade to SELL. Upside is limited for Cathay Pacific and Singapore Airlines (HOLD). Focus is recommended on US airlines or APAC commercial aerospace/defence for better risk/reward.
  • There is no specific target price published in the excerpt for the stocks under SELL or HOLD.

above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website : https://www.dbs.com/insightsdirect/industry/IN462f0f2e3f783fa38dc5984be3b93500