Group 1 - The three major airlines in China experienced a collective decline in stock prices, with China Southern Airlines down 4.36% to HKD 5.92, China Eastern Airlines down 3.28% to HKD 5.61, and Air China down 2.68% to HKD 6.89 [1] - The People's Bank of China announced a reduction in the foreign exchange risk reserve ratio for forward foreign exchange sales from 20% to 0%, effective March 2, to support enterprises in managing exchange rate risks and stabilize market expectations [1] - Analysts from Dongxing Securities indicated that domestic airline capacity for January 2026 is expected to decrease by approximately 4.3% year-on-year, while showing a 5.8% increase compared to December 2025, as the industry prepares for the Spring Festival travel rush [1] Group 2 - The report suggests that the timing of the Spring Festival in 2026, which is nearly three weeks later than in 2025, has led to a year-on-year decline in capacity deployment for January [1] - The formation and maintenance of a non-involution environment is expected to accelerate the process of industry rebalancing, which will significantly benefit the overall profitability of the airline sector [1]