
☕️ [Task Coins Giveaway] Daily Market Talk — SpaceX Soars 19% In Record Debut
SpaceX rockets 19% in the biggest IPO ever, a US-Iran peace deal sinks oil 7% and sends Asia soaring, and Warsh opens his first Fed meeting this week.
Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan,...
Air China retreated about 2.16% to close at HK$4.07 today, pressured by regulatory scrutiny and persistent industry headwinds. Mainland authorities recently questioned Air China and China Southern over ticket overselling practices, raising market concerns about potential pricing power constraints from stricter regulations. JPM's latest report highlights that Chinese airlines posted their worst quarterly losses in three years during Q2, while elevated fuel costs and uneven demand recovery continue to weigh on the sector. On the positive side, Air China swung to profitability in Q1 with net profit of HK$1.943 billion (up approximately 188% year-over-year) and operating revenue climbing 17.8% YoY, signaling gradual fundamental improvement. From a valuation perspective, Air China has declined 42.76% year-to-date and fallen 47.62% from its 52-week high of HK$7.77, now trading near historical lows, though valuations remain at relatively elevated levels with a P/E of 37.38.
Air China moved slightly higher to 4.16 HKD, buoyed by the recent announcement of a 15 Airbus A350-900 aircraft order at a $6.09 billion list price. The stock nonetheless remains in deep correction, down 41.49% year-to-date and sitting just 6.94% above its mid-July 52-week low of 3.89 HKD. Q1 delivered a return to profit with EPS of 0.11 HKD and revenue of 50.5 billion HKD (up 17.8% YoY), reflecting recovering passenger traffic. However, valuation at PE 38.2 appears stretched. The more significant near-term constraint is sector-wide: elevated jet fuel costs persist despite a moderation of domestic flight fuel surcharges by RMB 30-50 starting early July, limiting profitability recovery for China's major carriers.
Air China traded higher in morning session reaching HKD 4.18 but retreated to close at HKD 4.12, reflecting limited market enthusiasm despite Q1's dramatic turnaround to profitability. The company reported Q1 net profit surged 188.77% year-over-year to HKD 1.94 billion, yet continues to grapple with elevated jet fuel costs and broader industry headwinds. JPMorgan noted Chinese Big Three airlines posted their worst quarterly loss in three years in 2Q25, while HSBC cut earnings forecasts for the three major mainland carriers by an average of 12%. A commercial partnership with Singapore Airlines offers a modest bright spot. The stock has declined 41.63% year-to-date and trades nearly 46.59% below its 52-week high of HKD 7.77, having recovered only 6.68% from a 13-day low of HKD 3.89 on July 13. At a P/E of 38.11x, the valuation reflects cautious market sentiment on sector recovery.
Air China rebounded approximately 2% today, primarily supported by aircraft order announcements from the group. At month-end, the group signed multiple Airbus procurement agreements, with Air China committing to purchase 15 A350-900 wide-body aircraft at a list price of roughly USD 6.09 billion. Concurrently, Air China, Shenzhen Airlines, and Hainan Airlines jointly ordered 95 aircraft totaling approximately USD 17.8 billion, signaling confidence in long-term capacity expansion. However, the airline industry has faced persistent pressure from elevated jet fuel costs since Q2, with combined profitability dropping to the lowest level in three years. Regarding valuation metrics, Air China remains deeply depressed: year-to-date performance is down 41.63%, the stock has fallen over 46% from its 52-week high of HKD 7.77, and at HKD 4.15 sits just 6.68% above the 52-week low of HKD 3.89, trading well below both the 20-day and 60-day moving averages—suggesting cautious market sentiment on fundamental recovery prospects.
Air China rebounded 2.78% to HKD 4.07 today, driven by Q1 earnings recovery and recent aircraft orders. The airline swung to profitability in Q1 2026, posting net income of HKD 1.94 billion and earnings per share of HKD 0.1134, representing a 188.77% and 188.22% year-on-year increase respectively, alongside operating revenue of HKD 50.49 billion (+17.8% YoY). This marked a sharp turnaround from the HKD 4.05 billion loss in the previous quarter. Meanwhile, the company recently agreed to purchase 15 Airbus A350-900 jets (valued at approximately USD 6.09 billion), signaling management confidence in capacity recovery. Regarding valuation, the stock is down 42.76% year-to-date and trades 47.62% below its 52-week high of HKD 7.77, suggesting relative valuation distress. At HKD 4.07, the price sits slightly below the 20-day moving average (HKD 4.23) and notably below the 60-day moving average (HKD 4.59). However, airline profitability remains vulnerable to crude oil price volatility, and earnings sustainability warrants close monitoring.
Mainland Regulators Question Air China, China Southern Over Ticket Overselling
CLSA Upgrades CATHAY PAC AIR to Outperform, Raises TP to HKD16.4
Cathay Pacific sees strong profit growth despite elevated fuel prices
CATHAY PAC AIR Estimates 1H Consolidated Profit of HKD6-6.5B; 1H Pax. Traffic Up 17%
Air China, Shenzhen Airlines, Hainan Airlines to Buy 95 Airbus Jets for USD17.8 Billion
Air China agrees to buy 15 Airbus A350-900 jets for US$6.09 billion list price

SpaceX rockets 19% in the biggest IPO ever, a US-Iran peace deal sinks oil 7% and sends Asia soaring, and Warsh opens his first Fed meeting this week.