Source: Zhithon Finance

The Aviation/airlines Industry continues its recent upward trend, as of the time of writing, $AIR CHINA (00753.HK)$ is up over 4%, $CHINA EAST AIR (00670.HK)$is up over 3%, $CHINA SOUTH AIR (01055.HK)$ is up nearly 3%.

According to data from Flight Butler, from November 29 to December 5, domestic ticket prices (excluding RBOB Gasoline surcharges) increased by 2% week-on-week, down 1% compared to 2023, and down 13% compared to 2019; domestic passenger volume decreased by 2% week-on-week, up 10% compared to 2023, and up 4% compared to 2019. Since November, domestic naked ticket prices and passenger flow growth have shown signs of stabilization, and the decline in naked ticket prices has further narrowed this week.

GTJA pointed out that recent domestic naked ticket prices have remained significantly higher year-on-year, estimating that RBOB Gasoline reductions have remained more than half, reflecting better-than-expected supply and demand recovery, and the off-peak season is expected to significantly reduce losses year-on-year. Considering that the recent decline in international oil prices will lag by about two months before impacting the domestic market, oil price pressures will continue to improve in the first quarter of 2025. It is expected that the concentration of passenger flow in the first half of the 2025 Spring Festival travel season will help airlines actively manage revenue, and the peak season may show unexpectedly high profit elasticity, catalyzing optimistic expectations. Guosen noted that the recent year-on-year decline in civil aviation ticket prices has significantly narrowed, indicating that the bottom of operations has passed, and it is believed that the supply-demand gap in civil aviation will continue to shrink, and airlines' profitability will continue to recover.

编辑/jayden