Asia Pacific Aviation Nowcast: Nowcast #141: China and Japan soft; regional demand resilient

Research evidence excerpt

Asia Pacific Aviation Nowcast: Nowcast #141: China and Japan soft; regional demand resilient

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Asia Pacific Aviation Nowcast

Nowcast #141: China and Japan soft;

regional demand resilient

Industry Overview

Real time tracking of Asian travel trends 08 July 2026

Our 141th Nowcast shows high frequency travel trends across Asia. Chinese airlines Equity

faced further pricing weakness in June and a soft start to summer peak, with both Asia-Pacific

volumes and price under pressure. Indian domestic air traffic declined sharply in June for Airlines

supply cut amid high fuel cost. Taiwanese airlines continued to deliver strong revenue

Nathan Gee, CFA >>

performance, supported by robust volume and resilient yield growth. CX and SIA saw Research Analyst

modest moderation in capacity growth in May, but summer price trends remain solid. Merrill Lynch (Singapore) +65 6678 0418

Korean airlines maintained int’l traffic growth, with Korean Air reporting 8% YoY growth nathan.gee@bofa.com

in int’l passengers in 2Q26, supported by higher load factors, while domestic traffic Amy Han >>

weakened further, down 23% YoY in June. ResearchMerrill LynchAnalyst(Hong Kong)

+852 3508 5344

China: Subdued June and weak start of Summer peak amy.han@bofa.com

The no. of flight showed a modest recovery in June, with the decline narrowing to -6.5% HiroResearchNakakura,Analyst CFA >>

YoY from -7.2% YoY in May. However, demand weakened further, as ex-fuel ticket prices Merrill Lynch (Singapore)

+65 6678 0972

fell -5.9% YoY, pointing to a soft start to the summer peak season for both volumes and hiro.nakakura@bofa.com

pricing. During the first 7 days of Summer, no. of flight were down -3.1% YoY,

supporting load factors at 84% (+1pp YoY), while ex-fuel ticket prices remained