The aviation/airlines industry stocks in Hong Kong collectively rose. As of the time of writing,$AIR CHINA (00753.HK)$Increased by 8.74%, $CHINA SOUTH AIR (01055.HK)$Increased by 5.06%, breaking through the high point at the end of September this year; $CHINA EAST AIR (00670.HK)$ Up 4.67%. $BEIJING AIRPORT (00694.HK)$ Increased by 2.13%, $CATHAY PAC AIR (00293.HK)$ Increased by 1.44%.

According to the report "World Tourism Barometer" released by the United Nations World Tourism Organization, approximately 1.1 billion tourists traveled internationally in the first nine months of 2024, and the global tourism industry has recovered to 98% of pre-pandemic levels, with a full recovery expected by the end of the year.

Everbright Securities believes that since 2024, the demand for domestic routes has maintained a recovery trend, and the demand for overseas routes has recovered strongly, with RPK in the first three quarters $AIR CHINA (00753.HK)$ increasing by 34% year-on-year and 22% compared to the same period in 2019, with domestic route RPK increasing by 13% year-on-year and international route RPK increasing by 168%, with RPK levels far exceeding those of the same period in 2019; the company's RPK in Q3 alone increased by 21% year-on-year, an increase of 29% compared to the same period in 2019.

In addition, recently, the State Council's executive meeting discussed and approved in principle the "Civil Aviation Law of the People's Republic of China (Revised Draft)" and decided to submit the draft for review by the Standing Committee of the National People's Congress. The meeting pointed out the need to continuously improve the quality of civil aviation services, tap domestic market potential, effectively implement related major investment projects, strengthen technological support, and promote high-quality development in civil aviation.

CICC pointed out that since 2024, the performance of the aerospace hi-tech holding group sector has gradually bottomed out due to demand influences. Against the backdrop of rapid changes in the macro environment, the industry still possesses strong demand rigidity and long-term certainty. With the conclusion of the 14th Five-Year Plan and the fading of industry disturbance factors, a recovery in industry prosperity is expected, and the sector is likely to welcome compensatory growth in 2025 from a low base.

Editor/Rocky