1H22 results were much worse than expected; sector could stay unprofitable in FY23F
Expect to see more red ink in 2H22 due to domestic lockdowns and travel restrictions; strict border controls will hamper international traffic in FY23F
More equity raising could be on the cards given airlines poor liquidity and damage inflicted on their balance sheet
Downgrade CSA to HOLD, Air China to FULLY VALUED with lower TPs; maintain HOLD on CEA with a lower TP
