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    600115   CNE000000TR0

CHINA EASTERN AIRLINES CORPORATION LIMITED

(600115)
  Report
End-of-day quote. End-of-day quote Shanghai Stock Exchange - 10/27
4.66 CNY   -0.64%
12:39aChina Aircraft Leasing Units to Buy, Lease Back 12 Airbus Jet Airliners
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10/18CHINA EASTERN AIRLINES : Form 6-K
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10/17CHINA EASTERN AIRLINES' : September Passenger Count Drops 32%
MT
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Analysis: China airfares rebound in potential rehearsal for global recovery

03/26/2021 | 10:20am EDT
FILE PHOTO: A China Eastern Airlines aircraft and  Shanghai Airlines aircraft are seen in Hongqiao International Airport in Shanghai

(Corrects Eikon formatting issues)

By Stella Qiu and Jamie Freed

BEIJING/SYDNEY (Reuters) - Widely watched airfares in China are recovering to pre-pandemic levels as domestic tourists lead a patchy air travel recovery, scattering crumbs of hope to a shattered global travel sector.

With international markets like Europe still in partial lockdown, the global tourism industry's attention is riveted on China's new travel patterns as it brings COVID-19 under control and lifts curbs on movement.

The Chinese domestic market quietly overtook the once-dominant U.S. market in size during the pandemic, but multiple coronavirus outbreaks before last month's Lunar New Year halted the rebound and could lead to first-quarter losses.

Now, with temporary testing and quarantine restrictions once again lifted, average prices for an economy seat during the April 3-5 Qingming festival, or tomb-sweeping holiday, have rebounded to 96% of 2019 levels, according to data from Ctrip.

Economy-class airfares for trips over the Labour Day holiday in early May have risen 11% compared with 2019 levels, says Ctrip, run by online travel giant Trip.com Group Ltd.

"It seems like demand has really caught up with capacity once again and airlines are deciding discounts are no longer needed to stimulate demand," said Luya You, transportation analyst at BOCOM International in Hong Kong.

"I think the pent-up demand that everyone has been expecting is finally showing up in full force," said You, adding she expects yields and revenues to reach normal by the second half.

Over the last year, Chinese domestic capacity had risen faster than demand, depressing airfares as carriers sought to fill as many seats as possible. A return to fare growth is seen as a final step in the recovery.

There are signs the United States, a close second in domestic capacity, is following a similar trajectory months behind China as vaccination rates rise, case numbers fall and airlines add more flights.

Average round-trip U.S. domestic fares for May to August remain up to 20% lower than 2019 levels, but are up as much as 36% higher than 2020, online travel agent Hopper said.

Europe, however, is bracing for a second lost summer in part because of a hobbled COVID-19 vaccine rollout and a heavy reliance on cross-border traffic.

When travel restrictions are lifted, the European market should expect a "bloodbath" with low-cost airlines like Ryanair and Wizz Air competing to offer the lowest possible fares, CAPA Centre for Aviation Chairman Emeritus Peter Harbison said this month.

STOCK GAINS

In China, the Lunar New Year holiday is usually the busiest time for local airlines. But this year's celebration was a wash-out for air travel, with capacity slashed and ticket prices plunging to five-year lows.

Now, Chinese airlines are ramping up domestic capacity for the next few months, diverting aircraft from the largely closed international market.

Chinese carriers are scheduled to operate 20.7% more domestic flights from April to October compared with 2019, according to flight master, a Chinese aviation data provider.

China Eastern Airlines will overtake China Southern Airlines to operate the most domestic flights, while planned flights by Spring Airlines will surge by 62.25% from 2019 levels, the company said.

Investors have noticed. Stock prices for the three biggest Chinese airlines have recouped pandemic-related losses.

But all airlines are facing new headwinds from rising oil prices - exacerbated this week by a shipping blockage in the Suez Canal - and concerns over COVID-19 restrictions in international markets.

Parash Jain, head of Asia Pacific transport research at HSBC, expects 2021 to be another loss-making year for the three biggest Chinese airlines and warns their shares already look like they have overshot.

"What we're seeing is the initial rebound in share prices has reflected the recovery in domestic market for now, with oil as a headwind, with foreign exchange no longer a tailwind and the rest of the world not favourable," he said.

(Reporting by Stella Qiu in Beijing and Jamie Freed in Sydney, Editing by Tim Hepher and Gerry Doyle)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CHINA EASTERN AIRLINES CORPORATION LIMITED -0.64% 4.66 End-of-day quote.-0.43%
CHINA SOUTHERN AIRLINES COMPANY LIMITED -1.68% 4.67 End-of-day quote.1.08%
HSBC HOLDINGS PLC -0.57% 441.8 Delayed Quote.17.38%
LONDON BRENT OIL -0.31% 83.87 Delayed Quote.66.58%
RYANAIR HOLDINGS PLC 2.13% 16.355 Real-time Quote.-1.57%
SPRING AIRLINES CO., LTD. -0.16% 57.24 End-of-day quote.3.27%
SUEZ -0.08% 19.735 Real-time Quote.21.76%
TRIP.COM GROUP LIMITED -1.00% 28.585 Delayed Quote.-14.44%
WIZZ AIR HOLDINGS PLC 0.46% 4622.09 Delayed Quote.0.88%
WTI 0.05% 82.171 Delayed Quote.74.79%
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Analyst Recommendations on CHINA EASTERN AIRLINES CORPORATION LIMITED
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Financials
Sales 2021 80 926 M 12 651 M 12 651 M
Net income 2021 -8 092 M -1 265 M -1 265 M
Net Debt 2021 159 B 24 813 M 24 813 M
P/E ratio 2021 -12,7x
Yield 2021 -
Capitalization 65 615 M 10 265 M 10 257 M
EV / Sales 2021 2,77x
EV / Sales 2022 2,00x
Nbr of Employees 81 157
Free-Float 29,4%
Chart CHINA EASTERN AIRLINES CORPORATION LIMITED
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China Eastern Airlines Corporation Limited Technical Analysis Chart | 600115 | CNE000000TR0 | MarketScreener
Technical analysis trends CHINA EASTERN AIRLINES CORPORATION LIMITED
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Last Close Price 4,66 CNY
Average target price 5,41 CNY
Spread / Average Target 16,1%
EPS Revisions
Managers and Directors
Zhou Qimin Chief Financial Officer & Vice President
Shao Yong Liu Chairman
Lijun Guo Chairman-Supervisory Board
Xue Bo Dong Independent Non-Executive Director
Hong Ping Cai Independent Non-Executive Director
Sector and Competitors