Zhi Tong Cai Jing·2025-11-24 06:06Core Viewpoint - Airline stocks continue to decline, with significant drops in share prices for major airlines, indicating a challenging market environment for the sector [1] Group 1: Stock Performance - China Southern Airlines (600029) down 3.07%, trading at HKD 5.06 [1] - China Eastern Airlines (00670) down 2.8%, trading at HKD 4.51 [1] - Air China (601111) down 1.09%, trading at HKD 6.34 [1] Group 2: Flight Cancellations - As of November 24, 10 AM, 12 routes between China and Japan have canceled all flights [1] - The cancellation rate for planned flights to Japan is expected to reach 21.6% by December 27, the highest in a month [1] Group 3: Industry Outlook - Guotai Junan Securities believes that the decline in passenger flow on Japan routes will have limited impact on industry profitability during the off-peak season, maintaining a long-term positive outlook for airlines [1] - The firm anticipates that airlines will dynamically adjust flight schedules, reallocating some capacity to Southeast Asia or domestic routes [1] - The domestic trunk routes remain a traditional source of profit for airlines and are expected to be a core driver for profit growth over the next two years [1]