UBS: Maintain the target price of China Southern Airlines at 3.3 Hong Kong dollars, with a "sell" rating.

According to a research report released by UBS, Air China's revenue increased by 3% last year, with a net loss of 1.77 billion yuan, of which the net loss in the fourth quarter reached 3.6 billion yuan. The bank pointed out that due to the increase in oil prices caused by the Iran conflict, the continuous rise in aviation fuel surcharges in the short term may suppress the passenger volume of domestic routes in China and reduce the willingness of Chinese passengers to travel abroad, but it may also attract more overseas passengers to travel to other Asian regions through Chinese airlines. The bank stated that if oil prices fall and with continued government policy support, the bank expects airlines to continue to increase revenue annually, resulting in a turnaround from loss to profit this year and a year-on-year profit growth. The bank is optimistic about the aviation industry in the long term and maintains Air China's target price at 3.3 Hong Kong dollars with a rating of "sell".