CEA - Chinese airlines say regulation likely to continue into 2022

China's three largest airlines, Air China (OTCPK:AIRYY), China Southern Airlines (ZNH -2.0%), and China Eastern Airlines (CEA -1.9%), all said in their earnings calls that Civil Aviation Administration of China (CAAC) flight restrictions would likely continue into the first half of 2022. The CAAC said last month that flights were only at 2% of pre-COVID levels as many flights are being cancelled due to rising COVID cases. Its "Five One" policy means that mainland carriers can only fly one route out of China a week and foreign carriers can only fly one route into China. If passengers are found to be infected or not, that number can be tweaked for individual airlines. Several analysts cut their forecasts for the Chinese airline companies for the next few years. All 3 stocks have provided negative returns over the last 6 months.

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Chinese airlines say regulation likely to continue into 2022