UBS: Mainland aviation industry may face downward pressure on ticket prices in the second half of the year, reiterates "sell" ratings for Air China (00753.HK) and China Eastern Airlines Corporation Limited (00670.HK)

According to the CITIC Securities APP, UBS released a research report stating that the current price of Chinese airline stocks reflects the market's overly optimistic expectations for a rebound in returns. The report mentioned that the Chinese aviation industry is facing downward pressure on ticket prices in the second half of the year, reaffirming a "sell" rating for Air China (00753.HK) and China Eastern Airlines (00670), with target prices of 3.2 Hong Kong dollars and 1.8 Hong Kong dollars, respectively. UBS is optimistic about the long-term growth prospects of Spring Airlines (601021.SH). They also believe that China Civil Aviation Information Network (00696) has high visibility in profit growth, giving it a "buy" rating with a target price of 12.9 Hong Kong dollars.