Movement Alert|Air China Falls 3.16% in Regular Trading, JPMorgan Forecasts Airlines Q2 Losses Worst in Three Years

Market Focus07-17

On July 17, Air China fell 3.16% in regular trading, trading at HKD 3.98/share, with turnover of HKD 31.43 million. The decline came as JPMorgan released a report forecasting that Chinese airlines' second-quarter losses would be the most severe in three years, citing a cautious industry outlook amid persistently elevated fuel costs dragging on profitability.

Air China previously disclosed its half-year performance forecast, projecting a net loss attributable to shareholders of approximately RMB 21 billion to 26 billion for H1, widening from RMB 18.06 billion in the same period last year. The company attributed the deterioration to jet fuel prices running at elevated levels, significantly squeezing airline profit margins. The three major carriers collectively pre-announced combined losses exceeding RMB 7.3 billion for H1, with Middle East conflicts pushing up aviation fuel prices as a core headwind.

The broader aviation sector was under significant pressure, with China Eastern Airlines down 5.73% and China Southern Airlines down 2.67%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment