UBS: Maintains target price of 3.3 Hong Kong dollars for Air China Limited (00753) with a "Sell" rating.

UBS released a research report stating that they are optimistic about the long-term outlook for the aviation industry, but they are maintaining a target price of 3.3 Hong Kong dollars for Air China Limited (00753) and rating it as "sell". Air China's revenue increased by 3% year-on-year last year, but the net loss reached 1.77 billion yuan, with a net loss of 3.6 billion yuan in the fourth quarter. The bank pointed out that due to the conflict in Iran causing an increase in oil prices, the rising aviation fuel surcharges may temporarily suppress the passenger volume on domestic routes in China, leading to a decrease in Chinese travelers' willingness to travel abroad, but it may also attract more overseas travelers to use Chinese airlines to travel to other regions in Asia. The bank stated that if oil prices decline and with continued government policy support, they expect airlines to continue to increase revenue year-on-year, leading to a turnaround from losses to profits this year, with a growth in profit compared to the previous year.