HK Stock Market Move | Airlines stocks lead the decline, domestic oil ticket prices in December turned negative year-on-year, while the month-on-month comparisons still adhere to normal seasonal patterns.

Aviation stocks lead the decline. As of the time of writing, Air China Limited (00753) fell by 2.75% to 6.73 Hong Kong dollars; China Eastern Airlines (00670) fell by 2.51% to 5.04 Hong Kong dollars; China Southern Airlines (01055) fell by 2.49% to 5.49 Hong Kong dollars; and CATHAY PAC AIR (00293) fell by 1.01% to 12.75 Hong Kong dollars. In terms of news, according to flight management data, around 2,195 round-trip flights between China and Japan have been cancelled in January next year, with an overall cancellation rate of 40.4%. Among them, 46 routes between China and Japan have all been cancelled in the next two weeks. The industry estimates that the peak of ticket refunds will continue until the end of December. Haitong of Cathay Pacific released a research report stating that in December, domestic oil-included ticket prices turned negative year-on-year, while observing that the month-on-month trend still follows a normal seasonal pattern. The year-on-year change may be due to improvements in revenue management in the same period in 2024 leading to an increase in the base. The recent pre-sale trend for Christmas and New Year holidays is good, and it is expected that the losses in Q4 of 2025 will still be significantly reduced, and the full year will turn losses into profits. It is expected that public and business travel will remain active after the New Year, and airline expectations are optimistic. The effect of combining the Spring Festival holiday with weekends in 2026 is weaker, and the concentration of passenger flows before and after the holidays may benefit airline revenue management.