Airline stocks led the gains in Hong Kong markets. As of writing, Air China (00753) rose 3.44% to HK$4.21, China Southern Airlines (01055) increased 3.87% to HK$3.49, Cathay Pacific Airways (00293) climbed 2.99% to HK$14.47, and China Eastern Airlines (00670) advanced 2.93% to HK$3.16.
On the news front, U.S. President Donald Trump issued a halt order on airstrikes against Iran on the 24th, followed by the Iranian military announcing a suspension of retaliatory strikes on the 26th. International oil prices subsequently experienced a sharp decline of over 6%.
Looking ahead, brokerage firm Yangtze River Securities noted that the summer peak season is expected to continue supporting flight volume, passenger traffic, and load factors. However, ticket prices remain at low levels year-on-year, and the industry's earnings flexibility still hinges on the stabilization of peak-season net ticket prices and changes in jet fuel costs.
It is noteworthy that several major airlines have recently exited the mutual viewing agreement on the TravelSky ICS system (the core flight management system for carriers). A research report from Guotai Haitong Securities suggested that this move is expected to shift airlines' revenue management focus from "peer competition" to "passenger demand," which could help reduce irrational competition and improve revenue management. Investors are advised to monitor subsequent changes in airline operational strategies and fare trends.
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