The latest report from HSBC analysts expects airlines in Mainland China and in Hong Kong to turn profitable from 2023, despite disruptions to domestic travel as international travel resumes. More losses are forecast losses for this year but double-digit ROE is expected in 2023e, supported by strong passenger yields. HSBC has downgraded Air China, China Eastern A shares to reduce, and China Southern to hold. “Don’t be confused by the downgrades – we are still bullish, albeit longer term. Our downgrades of the A-shares of the Big 3 Chinese airlines – China Eastern, China Southern and Air China – follow