On the 26th, the Airport Authority of Hong Kong signed a cooperation agreement on equity of Zhuhai Airport with Zhuhai Transport Holdings Group in Zhuhai.

According to the agreement, the Airport Authority has invested approximately 4.3 billion yuan to acquire a 35% stake in Zhuhai Airport, and both parties will jointly enhance the south china greater bay area concept's world-class airport cluster and the development of the aviation industry in the region. It is understood that Zhuhai Airport is undergoing expansion, including the construction of a brand new T2 terminal, which is planned to be completed and put into use in 2025.

At that time, it will be able to handle over 27 million passengers annually. The two places will also cooperate to establish a high-end aviation industrial park in Hong Kong and Zhuhai, supporting the development of the regional aviation industry and enhancing the overall competitiveness of the greater bay area.

According to the Ministry of Foreign Affairs, in order to further facilitate exchanges between Chinese and foreign personnel, China has decided to expand the range of visa-free countries, implementing a visa-free policy for holders of ordinary passports from nine countries, including Bulgaria and japan, from November 30, 2024, to December 31, 2025.

China Post Securities pointed out that Japan is the country with the most intensive international flight volume in our country at present. It is expected that after the one-way visa exemption for entry into China, the inbound passenger flow into our country is expected to further recover, which is bullish for the growth of flight volume and the further digestion of airlines' capacity.

According to Zhito Finance APP, recently ubs group began coverage of american airlines stocks, forecasting stronger growth in revenue per available seat mile in 2025, with profit margins expected to improve.

Haitong Int'l research reports indicate that during the Spring Festival and summer transportation peak seasons, domestic supply and demand have significantly increased year-on-year compared to 2019, with rigid travel demand driving stable growth in airline volume. Since the beginning of this year, international flights have further recovered, and as international relations ease and exit-entry visa policies gradually become friendlier, it is expected that international aviation travel demand will further warm up in 2024.

In the short term, the demand for private travel during the National Day holiday is strong, and the supply and demand for international routes is accelerating recovery, but the subdued demand for business travel in the off-season may drag down the overall recovery pace, which is generally constrained by the economy and may affect price performance.

In the long run, the expansion rate of capacity introduction by China's airlines is likely to slow down significantly; travel confidence continues to recover. The bullish long-term investment logic for the aviation industry remains unchanged as we wait for the economy to warm up. It is expected that the profit center for airlines will likely rise in 2024, focusing on investment opportunities in the aviation sector.

Related companies in the aviation sector:

China Southern Airlines (01055), Air China Limited (00753), China Eastern Airlines (00670), Cathay Pac Air (00293), Beijing Airport (00694), Travelsky Tech (00696), Meilan Airport (00357), etc.