Chinese Airlines: Dragon Boat Holiday air travel review and an early look at summer travel

Research evidence excerpt

Chinese Airlines: Dragon Boat Holiday air travel review and an early look at summer travel

J P M O R G A N Asia Pacific Equity Research

22 June 2026

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Chinese Airlines

Dragon Boat Holiday air travel review and an early look

at summer travel

Dragon Boat Festival air travel offered limited comfort: holiday fares held up, but Infrastructure, Industrials &

June’s broader price and volume trends remained weak outside peak travel days, Transport

and early summer data also point to a decline. Civil aviation passenger flow rose Jenny Qiu, CFA AC

only 0.6% Y/Y during the holiday, lagging rail’s 3% Y/Y growth, reinforcing our (852) 2800 8503

view that airlines are still losing share among price-sensitive domestic travelers. jenny.qiu@jpmorgan.com

Headline domestic economy fares reached Rmb827, up 29% Y/Y, but fuel Karen Li, CFA

surcharge support explains much of the strength. The underlying June trend looked (852) 2800-8589

weaker, with first-half domestic flights and passenger traffic down 5–10% Y/Y karen.yy.li@jpmorgan.com

and base fares down ~10% Y/Y. Early summer travel indicators add to the caution, Sunny Su

(852) 2800 8551

with July–August passenger expectations down ~4% Y/Y. We would use any sunny.su@jpmorgan.com

share price rally linked to oil or Strait of Hormuz news as a selling opportunity, and

Mufan Shi

keep UW on China Eastern H/A and China Southern H/A, with Neutral on Air (852) 2800-8502

China H/A and Spring Airlines. mufan.shi@jpmorgan.com

J.P.