The Zhitong Finance app learned that aviation stocks generally declined in early trading. As of press release, Air China (00753) fell 4.36% to HK$5.26; China Southern Airlines (01055) fell 2.59% to HK$3.76; Eastern Airlines (00670) fell 2.32% to HK$2.53; and Cathay Pacific (00293) fell 1.62% to HK$7.89.

J.P. Morgan said earlier that since the beginning of the year, mainland aviation stocks have fallen by about 20%, reflecting the market's concern about post-epidemic travel demand, but the bank believes that the market is too worried. According to the bank, the pressure on fuel costs is easing and the RMB exchange rate is picking up. It believes that mainland aviation stock prices are catching up. In addition, current market conditions reflect that there is room for profit in the fourth quarter to rise. The outlook for next year is positive, and the yield trend is strong under tight market supply. In response to the adjustment of profit forecasts, the target prices of the three major airline stocks were lowered. The target price for Air China was lowered from HK$7.6 to HK$6.8, the target price for China Eastern Airlines was lowered from HK$3.5 to HK$3.2, and the target price for China Southern Airlines was lowered from HK$6 to HK$5.

Guotai Junan pointed out that the decline in volume and prices in November has dissipated. Currently, passenger flow has rebounded to the same period in 2019. Domestic passenger flow has increased by nearly 10%, and fuel-containing fares have remained basically the same. Visa-free travel for the six countries in Europe and Asia will be piloted in the near future. A series of measures will guarantee a steady increase in international flights. It is expected that the fare center will rise further in 2024.