HSBC forecasts a year of record profits for China’s big three airlines

With the restoration of international routes easing overcapacity in domestic markets, HSBC predicts 2024 to be a “year of record profits” for China’s big three airlines (Air China, China Eastern Airlines and China Southern Airlines) in its latest report. The report stated: “we now model international capacity (ASK) for the Big Three to recover to 99% of the 2019 level in 2024e vs just 44% in 2023e. Our combined 2024e profit forecast of RMB20.4bn [$2.8 billion] for the Big Three is 14% above consensus.” The Civil Aviation Administration of China (CAAC) expects the number of Chinese passengers to reach a