June earnings preview: War headwinds, but airlines staying broadly profitable

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June earnings preview: War headwinds, but airlines staying broadly profitable

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Airlines - Asia-Pacific

June earnings preview: War headwinds, but

airlines staying broadly profitable

Price Objective Change

June earnings preview: War headwinds, but still profitable 21 July 2026

We see Asia Pacific airlines staying broadly profitable for June earnings season despite Equity

fuel cost headwinds given strong demand. Taiwan and HK airlines could deliver better Asia-Pacific

results with their high cargo mix seeing good cost recovery. IndiGo looks poised for a Airlines

QoQ earnings rebound helped by capped fuel costs, less Rupee depreciation and good Nathan Gee, CFA >>

pricing power, while Singapore Airlines could see a small net loss dragged down by Air Research Analyst

India. And Qantas 2H26 earnings are unlikely to surprise with all eyes on Qantas Merrill+65 6678Lynch0418(Singapore)

international strategy update and forward unit revenue guides. For more on our Japanese nathan.gee@bofa.com

airlines 1Q FY3/27 preview, please see: Airlines - Japan: 1Q preview. Amy Han >>

Research Analyst

Merrill Lynch (Hong Kong)

amy.han@bofa.comTaiwan/HK: Strong cargo tailwinds helpful in June-quarter

Cargo has seen very strong 2Q26 cost recovery with Taiwan cargo unit revenues +36.5% Hiro Nakakura, CFA >>

YoY, and this should support robust results for the Taiwan and HK airlines. Our 2Q26 Merrill Lynch (Singapore)

estimates are broadly in-line with consensus for EVA and CAL with mild net income hiro.nakakura@bofa.com

expected despite higher jet fuel. But our CX 1H26 net income is below consensus which

is optimistically looking for 1H26 net income YoY growth despite higher fuel.