Aviation/airlines industry stocks are among the top gainers, as of the time of writing, $AIR CHINA (00753.HK)$up by 5.25%, $CHINA SOUTH AIR (01055.HK)$up by 5.12%, $CHINA EAST AIR (00670.HK)$ up by 2.68%, $CATHAY PAC AIR (00293.HK)$Increased by 1.49%.

On the news front, on November 12, the State Council announced the revised "National Annual Festival and Memorial Holiday Leave Guidelines," which will increase the holidays off for all citizens by 2 days starting January 1, 2025. Citic Sec's research report states that referring to the market performance during the 2024 Spring Festival, this revision will significantly boost the public's travel demand in terms of timing and willingness.

GTJA pointed out that in 2023, suppressed demand was released, and airline prices were prioritized, leading to a historic high in industry profits in Q3. In 2024, there will be a clear distinction between peak and off-peak demand, with airlines prioritizing passenger load factors. A-share airlines experienced a 14% year-on-year decline in Q3 profits, still surpassing that of Q3 2019. The net profit attributable to the parent company for Air China, China Southern Airlines, and China East Air in Q3 2024 fell by 18% year-on-year but increased by nearly 10% compared to Q3 2019, still better than expected after accounting for exchange rates. The institution pointed out that the future trend of supply and demand recovery is certain, making it the right time for reverse layout in the off-season.

Editor/Rocky