BEIJING: China’s top three airlines are bracing for a further margin squeeze as softer travel demand pressures passenger yields and a weakening yuan currency inflates costs, analysts said, as many of them slashed their annual profit forecasts for the carriers.
The outlook revision - for which analysts also cited an economic slowdown amid a US-China trade war and fears of rising oil prices - comes after China Southern Airlines, Air China and China Eastern Airlines turned in lower net profits for the January-June period last week, erasing first-quarter gains.