Zhitong Finance APP learned that the aviation/airlines industry continues to rise, as of the time of publication,$AIR CHINA (00753.HK)$increased by 9.72%; $CHINA SOUTH AIR (01055.HK)$increased by 7.66%;$CHINA EAST AIR (00670.HK)$increased by 5.21%;$BEIJING AIRPORT (00694.HK)$rose 1.44%.

On the news front, the aviation industry has received multiple bullish signals. The central parity rate of RMB against the US dollar is reported as 7.0101, up by 253 points, hitting a new high of over 16 months; it is reported that OPEC+ will continue to push forward with the production increase plan; both sides of the Libya conflict have signed an agreement to end the central bank crisis, easing concerns about disrupted supply from Libya. In addition, the National Day holiday tourism market remains hot, as of September 24th, domestic airline ticket bookings for the National Day holiday exceeded 7.3 million, with the daily average booking volume during the holiday period increasing by about 17% compared to the same period last year.

Zhongtai Securities previously pointed out that the continuous strengthening of the RMB exchange rate is expected to alleviate the exchange rate pressure on airlines; it is expected that the upcoming National Day holiday will still see a strong balance between supply and demand. Galaxy Securities also stated that in 2024, with the continuous recovery of civil aviation travel demand in the post-epidemic era, coupled with frequent favorable policies for international visa-free travel, the logic of increasing international flights will be further strengthened, and the industry demand side is expected to accelerate. With the optimization of the supply-demand balance combined with improvements in oil and exchange rates, under the marginal improvement of several factors, airlines are expected to turn losses into profits within the year.

Editor/ping