Airlines and Airports - China: Monthly Monitor – May’26: Domestic capacity cut amid demand weakening

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Airlines and Airports - China: Monthly Monitor – May’26: Domestic capacity cut amid demand weakening

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Airlines and Airports - China

Monthly Monitor – May’26: Domestic

capacity cut amid demand weakening

Industry Overview

Monthly Monitor to track China Airlines & Airports 22 June 2026

Our monthly China Airlines & Airports monitor includes monthly operational data for Equity

covered Chinese major airlines & airports, high frequency industry data and highlights on China

industry updates to track trends in the industry. Domestic capacity saw further cuts in Airlines and Airports

May, with ASKs for Big 3 down at high single-digit YoY. Demand softened during slow Amy Han >>

season, as ex-surcharge ticket price growth narrowed to 5% YoY in May and further to Research Analyst

0.6% in 1H June. Load factors also began to decline YoY from mid-June. Int’l remained Merrill+852 3508Lynch5344(Hong Kong)

relatively resilient, with capacity maintained or expanding and continued load factor amy.han@bofa.com

improvement for Air China, CEA, and Spring. Singapore jet fuel growth narrowed to 45% Nathan Gee, CFA >>

Research Analyst

YoY in 1H June from 85% in May. With jet fuel normalization likely to take time, demand Merrill Lynch (Singapore)

weakness is emerging as the key concern heading into the summer peak season. +65 6678 0418

nathan.gee@bofa.com

Domestic: Supply cut amid softening demand HiroResearchNakakura,Analyst CFA >>

Domestic ASK growth slowed to high single-digit YoY for Big 3 in May, while Spring Merrill Lynch (Singapore)

+65 6678 0972

maintained stronger growth at 16% YoY entering slow season post-Labor Day and hiro.nakakura@bofa.com

facing elevated fuel costs. Demand began to soften from May, as reflected in ex-fuel

ticket price growth moderating to 5% YoY.