China Air Carriers Still a Bargain

CICC has upgraded major Chinese airlines like Air China and China Southern to 'buy' due to a strong economic recovery and increased travel demand. The yuan's strength is also encouraging travel. Despite high valuations, these airlines are considered bargains compared to peers, with China Southern trading at 9 times estimated earnings versus an average of 13 for the Asia Pacific index and 22 for Singapore Airlines.

What are the implications of the recovery in the economy for the airline industry?

Why are the shares of the so-called Big Three airlines considered a bargain?