As reported by the Wise Finance app, aviation/airlines industry stocks rose in early trading. As of the time of writing, Air China Limited (00753) rose by 3.17% to 4.23 Hong Kong dollars; China Southern Airlines (01055) rose by 4.04% to 3.35 Hong Kong dollars; Capital Airport (00694) rose by 1.06% to 2.87 Hong Kong dollars; China Eastern Airlines (00670) rose by 2.76% to 2.23 Hong Kong dollars.

On the news front, the Canadian transportation department announced on its website on October 28th that, on October 24th, under the instruction of the Minister of Transport of Canada by the Minister of Foreign Affairs, the restrictions on 'a total of no more than six round-trip scheduled passenger flights per week to Canada by airlines from the Mainland China' and 'the ban on direct flights from Beijing to Canada' issued on February 3, 2022 were revoked. Starting from October 25, 2024, the restrictions on Air China Limited, Capital Airlines, China Eastern Airlines, China South Air, Hainan Airlines, Sichuan Airlines, Xiamen Airlines, etc., have been lifted.

SHWY pointed out that as the peak summer season for aviation ends, travel demand still shows resilience. Currently, the aviation/airlines industry's supply and demand fundamentals are improving domestically, with stable domestic demand growth and ongoing recovery in international demand. The long-term supply and demand gap has a relatively high certainty. GTJA believes that the international flight schedule for the new aviation season will increase by 5% year-on-year, remaining relatively flat compared to the 2024 summer season. Unlike the market's view that the recovery of international flights in the new aviation season is stalling, domestic airlines are increasing international flights by improving market share.