0500 GMT - Mainland Chinese airlines are expected to post deeper 1H losses compared with a year ago due to fuel pressures, HSBC analysts write in a note. Though jet fuel is down 54% since the peak of the Middle East conflict, it still remains higher than the pre-war average, they write. The divergence between the Big 3--Air China, China Southern and China Eastern--and Cathay Pacific is deepening, with Cathay expected to log a profit for 1H on robust premium demand and cargo yields, they say. "The question is no longer whether fuel is falling, but whether it declines quickly enough to restore profitability for the Big 3 before peak summer demand fades," they add. HSBC retains a buy rating on Cathay and a hold for the Big 3's A and H shares. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

July 10, 2026 01:00 ET (05:00 GMT)

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