According to the Zhitong Finance APP, aviation stocks rose in the afternoon. As of the time of publication, Meilan Airport (00357) increased by 15.23% to 9.91 Hong Kong dollars; Capital Airport (00694) rose by 7.88% to 3.56 Hong Kong dollars; China Southern Airlines (01055) rose by 7.69% to 3.64 Hong Kong dollars; Eastern Airlines (00670) rose by 7.26% to 2.51 Hong Kong dollars; Air China Limited (00753) rose by 4.48% to 4.43 Hong Kong dollars.

On the news front, according to the Ministry of Transportation public account information, on October 1, 2, 3, and 4, the civil aviation passenger traffic volume was 238.4, 2.306, 2.19, 2.208 million respectively, with year-on-year growth of 11.6%, 11.7%, 12.5%, 16.7% compared to the same period in 2023, and 37.8%, 20.1%, 16.7%, 16.9% compared to the same period in 2019. Western Securities pointed out that during the National Day holiday, civil aviation passenger traffic maintained good growth, determining that the aviation stocks are at a long-term cyclical bottom.

HTSC pointed out that aviation, as a typical pro-cyclical variety, market style and exogenous variables such as oil prices and exchange rates may catalyze sector stock prices. At the same time, the industry's supply growth rate is expected to continue to slow down, and we believe that the improvement in civil aviation supply and demand will be further realized. In terms of airports, the reduced deduction rate, pressure on duty-free business, and sector stock price elasticity may be suppressed. The recovery of international flight traffic and duty-free unit prices still need to be observed, and the marginal improvement in profitability of individual stocks may be more attractive.