Hong Kong Stocks Movement | Airlines Stocks Decline Again Amid Mass Cancellations of Japan Flights; HSBC Warns of Direct Profit Risks

Airlines stocks in Hong Kong continued their downward trend. As of press time, CHINA EAST AIR (00670) fell 4.56% to HK$4.40, CHINA SOUTH AIR (01055) dropped 2.33% to HK$5.02, and AIR CHINA (00753) declined 2.33% to HK$6.30.

Recent data from Flight Master DAST revealed that as of November 24, 12 China-Japan routes had canceled all flights, affecting cities such as Nagoya, Fukuoka, Sapporo, and Osaka. Monitoring data indicates that the cancellation rate for upcoming Japan-bound flights will peak at 21.6% on November 27, the highest level in a month.

On November 26, the Chinese Embassy in Japan issued another safety advisory urging Chinese citizens to remain cautious. HSBC Holdings PLC noted in a report that multiple government departments have advised against non-essential travel to Japan. Additionally, Chinese airlines reportedly received directives to maintain reduced flight schedules to Japan until the end of March next year.

HSBC warned that this poses a direct risk to airline profitability. Since the pandemic, China-Japan routes have been among the most profitable for airlines, and the extended flight reductions will cover the lucrative Lunar New Year holiday period.