Core Viewpoint - The performance of Juneyao Airlines has significantly declined due to the ongoing maintenance of the PW1100G engines, which has led to a reduction in domestic capacity and increased maintenance costs. The company anticipates that engine repairs will conclude by 2026, but current progress suggests this timeline may be overly optimistic [2][4][8]. Financial Performance - For the first three quarters, Juneyao Airlines reported a revenue of 17.48 billion yuan, a slight decrease of 0.06% year-on-year. The net profit attributable to shareholders was 1.089 billion yuan, down 14.28% year-on-year, while the net profit excluding non-recurring items was 976 million yuan, reflecting a decline of 17.90% [2][4]. - The company's cash flow situation has worsened, with long-term borrowings increasing by 46.58% year-on-year, indicating potential short-term cash flow pressures [3][13]. Operational Challenges - The decline in performance is attributed to engine maintenance, which has reduced domestic capacity and increased repair costs. The PW1100G engines, which power a significant portion of the A320neo fleet, require extensive checks and repairs due to quality defects identified by the manufacturer, RTX [4][6]. - As of October 31, 2025, Juneyao Airlines had 20 A320neo aircraft grounded for engine repairs, representing about 20% of its fleet, which has led to a 1.4% decline in overall capacity and a 6.9% drop in domestic capacity year-on-year [7][8]. Strategic Adjustments - In response to capacity constraints, Juneyao Airlines has increased its international flight offerings, with international capacity growing by 16% year-on-year in the third quarter. The airline has added 123 international routes in the first half of 2025, resulting in a 28.5% increase in international passenger transport volume [10][12]. - The company plans to continue expanding its international routes, particularly focusing on European destinations, while maintaining confidence in its core domestic market [10][12]. Market Position - Juneyao Airlines faces intense competition from high-speed rail and other market players, particularly in its main bases of Shanghai and Guangzhou. The airline's strategy includes optimizing its route network and enhancing its international presence to mitigate domestic performance challenges [9][10].