Shares of China's major airlines are lagging Cathay Pacific Airways Ltd. by nearly 50 percentage points this year, as analysts expect weaker profits to persist on lackluster domestic travel demand.

The performance gap highlights divergent recovery trajectories between mainland carriers and the Hong Kong-based airline. While Cathay Pacific has benefited from international route restoration and premium travel rebound, Chinese airlines continue to grapple with subdued consumer spending and uneven domestic market conditions.

Analysts project that profit pressure will extend through upcoming quarters as domestic travel demand fails to meet earlier optimistic forecasts. Capacity additions have outpaced passenger volume growth, pressuring yields and load factors across the sector.

The widening disparity underscores structural challenges facing mainland carriers, including intense competition on core routes and limited international exposure compared to Cathay Pacific's global network advantage.