GLONGHUI, January 22 | UBS released a report saying that the outlook for the mainland aviation industry this year focuses on the recovery of international flights. It is expected that the second quarter of this year will release demand for outbound traffic and ease of supply bottlenecks. However, domestic traffic demand may be weaker than expected, mainly due to the slowdown in local leisure demand and competition caused by high-speed rail. It is believed that in terms of domestic business, the three major airline companies, Air China, China Eastern Airlines and China Southern Airlines, are facing greater fare pressure than Spring Airlines. Spring Airlines is still the bank's first choice in the industry. The main beneficiaries have more business on Japanese and Korean routes, and these routes will recover strongly this year, and profitability will also improve. UBS maintained a conservative view of the three major mainland airlines and lowered its earnings forecast per share by 1% to 5% for this year, believing that the domestic business performance of the three companies is at risk. Among them, China Eastern Airlines' target price was lowered from HK$2.42 to HK$2.13; the Air China Airlines target price was lowered from HK$5.1 to HK$4.6, both rated as “sale”; and China Southern's target price was lowered from HK$5.1 to HK$3.6, giving it a “neutral” rating.