Glonghui, December 29 | Damo released a research report saying that China's air travel demand has been weaker than expected since late October, which may cause airline profits to weaken in the fourth quarter. The bank lowered the profit forecast for the three major Chinese airline stocks this year, reducing the target price of Air China by 10.9% to HK$5.05, the target price of China Eastern Airlines shares by 17.1% to HK$2.09, and the target price of China Southern Airlines shares by 16.7% to HK$3.69, all maintaining the “in sync with the market” rating. The bank said that even during the peak season in the third quarter, the profits of the three major airlines did not exceed the level of 2019. Looking ahead to 2024, profit margin pressure is expected to continue under economic prospects and household income expectations, especially during the off-season. It believes that it will take more time to see a turnaround, and indicates that Hong Kong stocks prefer Cathay Pacific in the coverage of aviation stocks.