Gelonghui, September 13 | Citi published a research report showing that the mainland aviation industry is characterized by high volume and weak prices this summer. According to CAAC statistics, passenger traffic increased 12% year-on-year, 18% higher than in 2019. International capacity rebounded to 77% in 2019, but the rate at which prices returned to normal far exceeded expectations. The average price of economy class after tax is 11% lower than last year. Citi mentioned that the industry's profitability in Asia is also facing challenges. The three major airlines were conservative in their capacity allocations in July of this year, but outbound capacity recovered strongly. Overall, the industry's performance in the summer was a bit disappointing. Furthermore, judging from the results for the second quarter, demand for business travel is still weak, and may not be able to support prices in the off-season in the face of increased capacity. The bank downgraded Eastern Airlines' rating from “buy” to “sell”, the target price from HK$2.53 to HK$1.7, the rating of China Southern Airlines from “buy” to “neutral”, and the target price from HK$3.8 to HK$2.8. Although the bank maintained Air China's “buy” rating and ranked first choice, it reduced its target price from HK$5.35 to HK$3.8.