Core Viewpoint - China Eastern Airlines (600115.SH) reported a decrease in passenger capacity and turnover for January 2026, while cargo turnover showed an increase [1] Group 1: Passenger Operations - The passenger capacity input (measured in available seat kilometers) for January 2026 decreased by 3.54% year-on-year [1] - The passenger turnover (measured in revenue passenger kilometers) for January 2026 decreased by 1.03% year-on-year [1] - The passenger load factor was 85.01%, which represents an increase of 2.16 percentage points year-on-year [1] Group 2: Cargo Operations - The cargo and mail turnover (measured in cargo mail ton kilometers) for January 2026 increased by 8.33% year-on-year [1] Group 3: Fleet Status - No new aircraft were introduced in January 2026, and one B737 series aircraft was retired [1] - As of the end of January 2026, the company operated a total of 825 aircraft [1]

Core Viewpoint - China Eastern Airlines (600115.SH) announced a decrease in passenger capacity for January 2026, indicating a potential shift in operational strategy and market conditions [1] Group 1: Passenger Operations - The passenger capacity input (measured in available seat kilometers) for January 2026 is expected to decline by 3.54% year-on-year [1] - The passenger turnover (measured in revenue passenger kilometers) is projected to decrease by 1.03% year-on-year [1] - The passenger load factor stands at 85.01%, which represents an increase of 2.16 percentage points year-on-year [1] Group 2: Cargo Operations - The cargo and mail turnover (measured in cargo mail ton kilometers) is anticipated to rise by 8.33% year-on-year [1]

Core Viewpoint - The company, Juneyao Airlines, reported a decline in passenger capacity and turnover for January 2026 compared to the previous year, with a slight increase in seat occupancy rate [1] Group 1: Year-on-Year Performance - The company's passenger capacity (measured in available seat kilometers) decreased by 7.84% year-on-year, with domestic, international, and regional routes showing changes of -3.49%, -16.09%, and -39.44% respectively [1] - The passenger turnover (measured in revenue passenger kilometers) fell by 6.04% year-on-year, with domestic, international, and regional routes experiencing declines of -1.51%, -16.01%, and -35.70% respectively [1] - The overall seat occupancy rate was 84.03%, which represents an increase of 1.61% year-on-year, with domestic, international, and regional routes showing changes of 1.76%, 0.07%, and 4.99% respectively [1] Group 2: Month-on-Month Performance - Domestic passenger capacity (measured in available seat kilometers) increased by 8.94% month-on-month, while domestic passenger turnover (measured in revenue passenger kilometers) rose by 9.40% month-on-month [1] - The seat occupancy rate for domestic routes increased by 0.37% month-on-month [1] - In contrast, international passenger capacity (measured in available seat kilometers) decreased by 2.07% month-on-month, with international passenger turnover (measured in revenue passenger kilometers) declining by 3.78% month-on-month [1] - The seat occupancy rate for international routes fell by 1.34% month-on-month [1]

Group 1 - The core viewpoint of the announcement is that China Southern Airlines is increasing its passenger capacity and cargo operations significantly by December 2025, with notable growth in international routes and overall operational metrics [1][2] Group 2 - By December 2025, the group's passenger capacity (measured in available seat kilometers) is expected to increase by 11.89%, with domestic, regional, and international segments rising by 6.81%, 2.80%, and 25.76% respectively [1] - The passenger turnover (measured in revenue passenger kilometers) is projected to rise by 11.20%, with domestic, regional, and international increases of 6.88%, 5.72%, and 22.77% respectively [1] - The passenger load factor is reported at 84.05%, showing a decrease of 0.53 percentage points year-on-year, with domestic and regional load factors increasing by 0.05 and 2.16 percentage points, while international load factor decreased by 2.03 percentage points [1] Group 3 - In terms of cargo operations, the cargo capacity (measured in available ton kilometers) is expected to rise by 19.28%, while the cargo turnover (measured in revenue ton kilometers) is projected to increase by 10.86% [1] - The cargo load factor stands at 51.95%, reflecting a year-on-year decrease of 3.95 percentage points [1] Group 4 - The group plans to introduce new major routes including Guangzhou-Jiaxing-Guangzhou (seven flights per week), Guangzhou-Darwin-Guangzhou (three flights per week), and Guangzhou-Madrid-Guangzhou (three flights per week) by December 2025 [1] Group 5 - By December 2025, the group will introduce 8 new aircraft, including 3 A320NEO, 3 A321NEO, 1 B737-8, and 1 C919, while retiring 2 aircraft, comprising 1 A321 and 1 B737-700 [2] - As of the end of December 2025, the group will operate a total of 972 transport aircraft [2]

Core Viewpoint - China Eastern Airlines (600115.SH) announced an increase in passenger capacity and operational metrics for December 2025, indicating positive growth trends in the airline's performance [1] Group 1: Passenger Metrics - The passenger capacity input (measured in available seat kilometers) is expected to rise by 4.93% year-on-year for December 2025 [1] - The passenger turnover (measured in revenue passenger kilometers) is projected to increase by 7.61% year-on-year [1] - The passenger load factor is reported at 85.65%, reflecting a year-on-year increase of 2.14 percentage points [1] Group 2: Cargo Metrics - The cargo and mail turnover (measured in cargo mail ton kilometers) is anticipated to grow by 8.07% year-on-year for December 2025 [1]

Core Viewpoint - China International Airlines reported an increase in passenger turnover and capacity for December 2025, indicating a positive trend in both domestic and international travel demand [1][2]. Group 1: Passenger Operations - The combined passenger turnover (measured in revenue passenger kilometers) increased by 10.0% year-on-year [1] - Passenger capacity (measured in available seat kilometers) rose by 4.0% year-on-year [1] - Domestic passenger capacity increased by 4.2% with a turnover rise of 10.6% [1] - International passenger capacity grew by 4.1% with a turnover increase of 9.1% [1] - Regional passenger capacity decreased by 0.7%, while turnover increased by 4.1% [1] - The average passenger load factor reached 82.2%, up by 4.5 percentage points year-on-year [1] - Domestic routes saw a load factor increase of 4.9 percentage points, international routes increased by 3.6 percentage points, and regional routes rose by 3.4 percentage points [1] Group 2: Cargo Operations - Cargo capacity (measured in available cargo ton kilometers) decreased by 1.9% year-on-year [1] - Cargo and mail turnover (measured in revenue cargo ton kilometers) increased by 5.3% year-on-year [1] - The cargo load factor was 39.2%, up by 2.7 percentage points year-on-year [1] Group 3: Fleet Expansion - Starting December 30, 2025, the company will launch a new route from Chengdu Tianfu to Almaty, operating two flights per week [2] - In December 2025, the company introduced 6 A320 series aircraft and 2 C919 aircraft [2] - By the end of December 2025, the company operated a total of 964 aircraft, including 418 owned, 252 under finance leases, and 294 under operating leases [2]

Core Viewpoint - The announcement from the company indicates a mixed performance in passenger capacity and turnover for December 2025, with domestic capacity declining while international capacity shows growth [1] Group 1: Capacity and Turnover - The company's passenger capacity (measured in available seat kilometers) is expected to increase by 0.21% year-on-year in December 2025 [1] - Domestic passenger capacity is projected to decrease by 1.93%, while international and regional routes are expected to increase by 6.03% and decrease by 20.22% respectively [1] - The passenger turnover (measured in revenue passenger kilometers) is anticipated to rise by 2.02% year-on-year, with domestic, international, and regional routes showing increases of 0.85%, 5.77%, and a decrease of 15.90% respectively [1] Group 2: Load Factor - The load factor is expected to be 83.93%, reflecting a year-on-year increase of 1.49%, with domestic, international, and regional routes showing changes of 2.40%, -0.19%, and 4.52% respectively [1] Group 3: Month-on-Month Changes - In December 2025, domestic passenger capacity is projected to increase by 6.47% month-on-month, while domestic passenger turnover is expected to rise by 6.49% [1] - International passenger capacity is anticipated to increase by 10.49% month-on-month, with international passenger turnover rising by 4.30% [1] - However, the load factor for international routes is expected to decline by 4.55% month-on-month [1]

Investment Rating - The investment rating for the airline transportation industry is "Positive" [2][7]. Core Insights - The industry has maintained a high passenger load factor during the off-peak season, with both domestic and international travel thriving. The high load factor and slight recovery in ticket prices suggest a significant improvement in airline unit revenue. The implementation of "anti-involution" measures and the self-regulatory agreement by the China Air Transport Association is expected to reduce malicious low pricing, further supporting ticket price recovery and enhancing airline profitability. Additionally, the decline in oil prices is likely to reduce costs, contributing to further profit growth for airlines. Key airlines to focus on include China Southern Airlines, China Eastern Airlines, Air China, Spring Airlines, and Juneyao Airlines [3][13]. Summary by Sections 1. Investment Recommendations - The industry has seen sustained high passenger load factors since early 2025, with both domestic and international routes performing well. The off-peak season is not as weak as expected, with high load factors and a slight recovery in ticket prices, indicating a potential significant recovery in airline unit revenue. The implementation of self-regulatory measures is expected to mitigate low pricing practices, further supporting ticket price recovery and enhancing airline profitability [3][13]. 2. Off-Peak Passenger Load Factor and Ticket Prices 2.1 Supply and Demand - The capacity growth rate has rebounded, leading to an increase in passenger load factors. In October 2025, the industry’s Available Seat Kilometers (ASK) and Revenue Passenger Kilometers (RPK) increased by 6.2% and 8.9% year-on-year, respectively, with a load factor of 87.4%, up 2.2 percentage points year-on-year [4][15]. 2.2 Ticket Prices - Ticket prices have weakened in December, with the average domestic ticket price at 839 yuan, down 7.0% year-on-year. The average ticket price for domestic routes, including fuel, was 709 yuan, down 6.2% year-on-year [4][23]. 2.3 Oil Prices and Exchange Rates - The average price of aviation fuel has slightly increased in December, with the domestic aviation fuel price at 6045 yuan per ton, up 3.9% year-on-year. The exchange rate of the Chinese yuan has appreciated against the US dollar, with the exchange rate at 7.0602 yuan per dollar as of December 16, 2025, down 1.78% from the end of 2024 [5][37]. 3. Airline Capacity and Load Factors 3.1 Operational Status - In November, most airlines maintained stable capacity growth, with significant increases in international capacity. The passenger load factors for both domestic and international routes have shown year-on-year improvements, significantly increasing compared to 2019 levels [4][43]. 3.2 Fleet Expansion - In November, Air China and China Southern Airlines each added 7 aircraft, marking the highest net increase among the six major airlines. From January to November, China Southern Airlines, Air China, and China Eastern Airlines saw net increases of 47, 26, and 21 aircraft, respectively [4][7].

Core Viewpoint - The announcement from the company indicates a mixed performance in passenger capacity and turnover for November 2025, with notable increases in international routes but declines in domestic and regional routes [1] Group 1: Capacity and Turnover - The company's passenger capacity input (measured in available seat kilometers) increased by 6.05% year-on-year, with domestic, international, and regional route contributions showing changes of -0.46%, 26.84%, and -27.66% respectively [1] - The passenger turnover (measured in revenue passenger kilometers) rose by 8.92% year-on-year, with domestic, international, and regional route changes of 0.81%, 38.35%, and -24.26% respectively [1] - The seat load factor reached 85.39%, an increase of 2.25% year-on-year, with domestic, international, and regional route changes of 1.10%, 6.76%, and 3.81% respectively [1] Group 2: Month-on-Month Changes - The company's domestic passenger capacity input decreased by 7.23% month-on-month, while domestic passenger turnover fell by 10.32% month-on-month, and the domestic route seat load factor declined by 3.00% [1] - The international passenger capacity input decreased by 8.00% month-on-month, with international passenger turnover down by 6.97% month-on-month, although the international route seat load factor increased by 0.90% [1]

Core Viewpoint - China Southern Airlines announced an increase in passenger capacity and turnover for November 2025, indicating growth in both domestic and international markets [1] Passenger Operations - Passenger capacity (measured in available seat kilometers) is expected to rise by 8.68% year-on-year, with domestic, regional, and international segments increasing by 5.55%, 9.75%, and 17.44% respectively [1] - Passenger turnover (measured in revenue passenger kilometers) is projected to grow by 10.42% year-on-year, with domestic, regional, and international segments increasing by 7.36%, 12.38%, and 18.99% respectively [1] - The passenger load factor is reported at 86.29%, an increase of 1.36 percentage points year-on-year, with domestic, regional, and international segments rising by 1.46, 1.85, and 1.12 percentage points respectively [1] Cargo Operations - Cargo capacity (measured in available ton kilometers) is expected to increase by 11.61% year-on-year [1] - Cargo turnover (measured in revenue ton kilometers) is projected to rise by 7.17% year-on-year [1] - The cargo load factor stands at 53.39%, a decrease of 2.21 percentage points year-on-year [1] New Routes and Fleet Expansion - New major routes introduced in November 2025 include Harbin-Ningbo-Harbin, Guiyang-Nantong-Guiyang, Changchun-Haikou-Changchun, and Changchun-Zhuhai-Changchun, each operating seven flights per week [1] - The company has introduced 7 new aircraft, including 5 A320NEO and 2 B737-8 planes, bringing the total operational fleet to 966 aircraft by the end of November 2025 [1]