Despite the "three major benefits" of improved passenger load factor, falling oil prices, and the appreciation of the RMB, the "three major airlines" are still in the red, and ticket prices are a "big problem."
Wallstreetcn·- China's aviation industry faces significant challenges despite favorable conditions like rising passenger rates and falling fuel costs. - Major airlines reported a combined loss of 984 million yuan in Q2, highlighting ongoing pressure from low ticket prices that have not translated into profits. - HSBC has downgraded profit forecasts for major airlines, predicting continued losses into 2025, with potential recovery not expected until 2026.