Capacity Investment: AIR CHINA plans to upgrade its capacity for the 2026 Spring Festival travel rush, increasing its registered aircraft by 25 year-on-year and operating over 70,000 passenger flights, a 10.1% increase from the previous year.

Flight Schedule: The airline will average approximately 1,800 flights daily, which is an increase of 160 flights year-on-year, focusing on key routes in major city clusters across China.

Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.

Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.

Inaugural Flight: AIR CHINA successfully completed its inaugural direct flight from Beijing to Abu Dhabi, marking the first direct connection between the capitals of China and the UAE operated by a Chinese airline.

New Route Details: The new route, launched in 2026, operates with Boeing 787 aircraft and offers four direct flights per week between the two cities.

Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.

Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).

Airline Stock Performance: Air China, China Southern Airlines, and China Eastern Airlines experienced declines in share prices, while BOC Aviation and Travelsky Tech saw slight increases, with most airlines rated as "Overweight" by analysts.

Short Selling Activity: Significant short selling was noted across various airlines, with China Southern Airlines having the highest ratio at 18.053%, indicating investor skepticism about future performance.

Express Delivery Platforms: ZTO Express is rated "Overweight," while J&T Express and JD Logistics faced minor declines, with both rated as "Equalweight."

Shipping Sector Overview: COSCO Ship Energy showed a positive performance with a 3.431% increase, while other shipping companies like SITC and OOIL experienced declines, with varying ratings from "Overweight" to "Underweight."