Aviation/airlines industry continues its recent strong performance, as of the time of publication, $AIR CHINA (00753.HK)$ 、 $CHINA SOUTH AIR (01055.HK)$Rising nearly 6%, $CHINA EAST AIR (00670.HK)$ Up more than 3%, Wheaton Precious Metals (WPM.US) fell more than 13%, with silver falling more than 4%, and others falling more than 2%. $CATHAY PAC AIR (00293.HK)$ 、 $BEIJING AIRPORT (00694.HK)$ Rising more than 1%.

On the news front, influenced by the expectation of ceasefire in Lebanon, international oil prices fell sharply on Monday, with WTI January crude oil futures falling by 3.23% to $68.94 per barrel. Brent January crude oil futures fell by 2.87% to $73.01 per barrel. GTJA previously stated that in the third quarter of 2024, international oil prices significantly fell. Due to the lag of about two months in the adjustment of domestic aviation fuel ex-factory prices, it is estimated that the average price of airline fuel will slightly decrease year-on-year, still nearly 30% higher than the third quarter of 2019. It is expected that oil price pressure will significantly improve in the fourth quarter of 2024.

In addition, according to the Ministry of Foreign Affairs, to further facilitate exchanges between Chinese and foreign personnel, the Chinese side has decided to expand the scope of visa-free countries. From November 30, 2024 to December 31, 2025, citizens holding ordinary passports from Bulgaria, japan, and 7 other countries will be granted visa-free entry. Zhongyou Securities pointed out that japan is the current target country with the densest international flight volume to China, and it is expected that after the one-way visa-free policy is implemented, inbound passenger flow will further recover, which is bullish for flight volume growth and bullish for airlines' capacity to be further utilized.

Editor/rice