Asian airlines brace for worse earnings amid China's slow opening

Asian airlines are largely expected to turn in weaker earnings than previously anticipated in the October-December quarter, with Chinese carriers continuing to struggle under Beijing's pandemic restrictions. Analysts surveyed by QUICK-FactSet downgraded the forecast earnings before interest and taxes in the quarter for 15 out of 35 airlines worldwide. The latest projections, made at the end of November, were compared to forecasts at September's end. Out of the 15 downgraded airlines, seven were Asian carriers. In contrast, Western airlines account for 12 of 20 carriers whose outlooks were upgraded from September's assessments. Japan's two major carriers -- ANA Holdings and Japan Airlines -- are among the winners. Japan loosened entry restrictions for tourists in October and the government has rolled out travel subsidies for residents. July-September quarter results also highlight the widespread struggle among Asian airlines. Earnings at 10 carriers deteriorated during that period, half of them in Asia. The eight airlines that turned in losses that quarter were all Asian. The carriers that reported losses include China's three major airlines: China Eastern Airlines, China Southern Airlines and Air China. Taiwan's China Airlines, Indian low-cost carrier IndiGo and South Korea's Jeju Air were also in the red. The uncertainties have continued into the current quarter. Market forecasts place China Southern's fourth quarter loss at roughly 7.1b Chinese yuan ($1.01b), marking a downgrade of about 1.8b yuan. The demand in passenger travel has been slower to recover than expected, said Daiwa Capital Markets Hong Kong's Kelvin Lau, who forecasted that China Southern will turn an annual profit in 2024. Story has more.<br/>