Will it still be business as usual?
• COVID-19 has fundamentally altered business travel demand, and we expect to see a 15-20% permanent decline in corporate travel requirements in future
• Airlines and airport hubs that built their business models around corporate travel are thus, likely to be laggards in coming out of the crisis
• Airlines geared towards leisure travel should outperform peers as borders reopen
• Therefore, we maintain BUY on the three Chinese carriers, while we are less positive on prospects for Cathay Pacific and Beijing Capital Airport