Airlines led the declines in Hong Kong stocks. As of press time, AIR CHINA (00753) fell 2.75% to HK$6.73, CHINA EAST AIR (00670) dropped 2.51% to HK$5.04, CHINA SOUTH AIR (01055) declined 2.49% to HK$5.49, and CATHAY PAC AIR (00293) slipped 1.01% to HK$12.75.

Industry data shows that approximately 2,195 round-trip flights between China and Japan scheduled for January next year have been canceled, representing a cancellation rate of 40.4%. Among these, 46 China-Japan routes have seen all scheduled flights canceled for the next two weeks. The peak refund period is expected to persist until late December.

A research report noted that December domestic fuel-inclusive fares turned negative year-on-year but maintained normal seasonal patterns sequentially. The year-on-year decline may stem from improved revenue management in 2024, leading to a higher base.

Recent pre-sales trends for the Christmas and New Year holidays remain strong, with expectations for a significant reduction in losses in Q4 2025 and a full-year turnaround. Post-New Year business travel is projected to stay active, keeping airline outlooks optimistic.

The 2026 Lunar New Year holiday effect is expected to be weaker, but concentrated passenger flows before and after the holiday could benefit airline revenue management.