Chinese Airlines: 2Q26 profit warnings and summer travel update

研报英文原文证据摘录

Chinese Airlines: 2Q26 profit warnings and summer travel update

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

15 July 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the

territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Chinese Airlines

2Q26 profit warnings and summer travel update

The Big Three airlines released their 1H26 profit warnings, highlighting that 2Q26 Infrastructure, Industrials &

net losses should be the most severe in the past three years. After posting a net profit Transport

in 1Q26, the big three airlines are expected to report an average 2Q26 net loss of Jenny Qiu, CFA AC

Rmb4.3B, driven by high oil prices and weak base fares—marking the highest (852) 2800 8503

quarterly loss since 2023. Summer travel demand is missing expectations, with jenny.qiu@jpmorgan.com

both volume and pricing weak Y/Y, as passenger volumes and flights declined Y/Y Karen Li, CFA

and underlying net fares remained under pressure, while rail substitution continued (852) 2800-8589

to intensify. Despite a reduction in fuel surcharges, weak pricing has not stimulated karen.yy.li@jpmorgan.com

demand, reinforcing a cautious outlook for the sector. Our stock view remains Sunny Su

(852) 2800 8551

unchanged: we stay Underweight on China Eastern Airlines and China Southern sunny.su@jpmorgan.com

Airlines, and Neutral on Air China and Spring Airlines.

Neil Zhang

• 2Q26 net loss the most severe in the past three years. After a net profit in (852)neil.zhang@jpmorgan.com2800-8598

1Q26, the Big Three airlines are expected to swing back to an average 2Q26

Mufan Shi