China Eastern Airlines Q3 profit drops 98% on jet fuel costs

Overview

• China airline's Q3 revenue was RMB 42.8 bln, unaudited

• Net profit attributable to shareholders fell 98% yr/yr

• Profit decline driven by surge in jet fuel prices amid Middle East geopolitical tensions

Outlook

• Company launches RMB500 mln-RMB1 bln share repurchase program after buying back RMB168 mln of shares by Sept. 30

Result Drivers

• JET FUEL COSTS - Co said surge in jet fuel prices, driven by Middle East geopolitical tensions, led to higher operating costs and sharp profit decline

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy."

• Wall Street's median 12-month price target for China Eastern Airlines Corp Ltd is CNY3.70, about 13.8% above its October 30 closing price of CNY3.25

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 64 three months ago

Reuters Recommended Reads

• Oct 30 - China Eastern Airlines's third-quarter profit plunges 98.2% on year

• Oct 29 - Air China's third-quarter profit tumbles as rising fuel costs, competition bite

• Oct 28 - As Iran war drags on, airlines pull back on fuel hedges and warn on fares

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)