As of the week ended 8 Apr, weekly flights scheduled between China and Japan fell 53% pue pue!eu1 uo Kjan!oadsau 1o %9 pue 1o人 %8l moue on nas sueadde A!edey'o Korea routes, during the summer/autumn flight season. We estimate a ~55% flight capacity YoY drop during the summer/autumn flight season; 4Q25 net loss was smaller than MSe and consensus, thanks mainly to better-than- expected pax yield and effective cost control, in our view.14% YoY full year pre-tax profit growth was robust in our view, despite demand hits from Thailand routes (1Q25) and inflation, per management. Strong inbound demand highlighted. Positive May were lower than they should be. Encouragingly, inflated pricing (higher YoY ex fuel, plus Rmb1o0 hike in fuel surcharges) has not weakened demand and load factors, · Unit cost ex fuel: To continue to drop thanks to higher aircraft utilization, normalization of maintenance costs, and lower exposure to Japanese routes (where unit cost meaningfully higher vs. average). · Capacity: Aircraft utilization hours: 9.97 in 2025, target 10.7-10.8 in 2026 (April 26: