Investment Rating - The report maintains a positive outlook on the aviation industry, indicating it is entering a "golden era" with an investment rating of "Overweight" [2][3]. Core Insights - The National Civil Aviation Work Conference emphasized "quality improvement and efficiency enhancement," with initial signs of reducing "involution" in the industry. The 2026 targets include a total transport turnover of 1,750 billion ton-kilometers, 810 million passenger transport, and 10.7 million tons of cargo, representing year-on-year growth of 6.7%, 5.2%, and 5.2% respectively [3]. - The global aircraft supply chain remains unhealed, with an aging fleet exacerbating supply constraints. Airbus plans to deliver 793 aircraft in 2025, while Boeing aims for 600, both below pre-pandemic levels. The backlog exceeds 15,000 aircraft, and the delivery cycle has extended to 6.8 years, leading to prolonged service of older models [3]. - Demand is bolstered by visa exemption policies, driving an increase in inbound travelers. The proportion of foreign visitors entering China under visa exemptions has stabilized above 70%. The upcoming Spring Festival is expected to see a daily average of 5.3% growth in passenger volume, with ticket prices projected to rise by 20% compared to the previous year [3]. - The report recommends continued investment in the aviation sector, highlighting the unprecedented constraints in aircraft manufacturing, high passenger load factors, and the growth of inbound and outbound travel. Key companies recommended include China Eastern Airlines, China Southern Airlines, Air China, Spring Airlines, Huaxia Airlines, and Juneyao Airlines [3]. Summary by Sections Supply Side - The global aircraft supply chain is still recovering, with significant delivery delays and an aging fleet leading to supply constraints. The total number of passenger aircraft in China is projected to grow by only 4% in 2025, with a peak in retirements expected by 2030 [3]. Demand Side - The implementation of visa exemption policies is expected to significantly increase the number of inbound travelers, with international routes becoming the main driver of demand growth in 2026. The Spring Festival is anticipated to show a notable increase in both volume and pricing [3]. Investment Recommendations - The report suggests a strong investment in the aviation sector, citing the current supply constraints and the potential for significant improvements in airline profitability. Specific airlines and global aircraft leasing companies are highlighted as key investment opportunities [3][4].

Core Insights - The article discusses the prevalent practice of airlines locking certain economy class seats, which limits consumer choice and is seen as a method for airlines to increase revenue through service tier differentiation [1][2] Group 1: Airline Practices - A survey conducted by the Jiangsu Consumer Protection Committee revealed that none of the 10 major airlines fully open all economy class seats for selection, indicating that seat locking has become a common practice in civil aviation services [1] - The airlines surveyed include Eastern Airlines, Southern Airlines, Air China, Hainan Airlines, Xiamen Airlines, Shenzhen Airlines, Shandong Airlines, Sichuan Airlines, Spring Airlines, and Juneyao Airlines [1] Group 2: Seat Locking Statistics - The proportion of locked seats during the purchasing phase varies significantly among the surveyed airlines, ranging from 19.9% to 62.1%, with an average of 38.7% [1] - Specific routes with high seat locking include Spring Airlines' "Nanjing-Lanzhou" route, which has over 60% of economy seats locked, and Shenzhen Airlines' "Shenzhen-Zhanjiang" route, with over 50% locked [1] Group 3: Consumer Concerns - Consumers have raised questions regarding the reasons for seat locking, the extent of locked seats, unlocking methods, and related rules, but airline customer service responses have been vague regarding these issues [2]

Core Viewpoint - The tourism and travel sector in the A-share market is experiencing a significant rally ahead of the 2026 Spring Festival, driven by strong demand and favorable policies [1][3]. Group 1: Market Performance - On January 19, 2026, the Wind tourism index surged by 2.5%, with major stocks like Dalian Shengya and Jiuhua Tourism hitting the daily limit [1]. - Key stocks such as Junting Hotel, Three Gorges Tourism, and China Duty Free saw gains exceeding 5%, while others like Jinjiang Hotel and Tianmu Lake rose over 4% [1]. - The overall market sentiment is bullish, indicating a preemptive warming of the Spring Festival market [1]. Group 2: Demand Drivers - The 2026 Spring Festival holiday, lasting from February 15 to 23, is expected to boost travel demand significantly, with a projected 5.39 billion passengers during the 40-day railway Spring Festival travel period, a 5% increase year-on-year [1][3]. - Domestic flight ticket bookings for the Spring Festival have surpassed 4.13 million, with a daily growth rate of approximately 21% [1][3]. - The trend of "reverse Spring Festival travel" is emerging, with a 35% year-on-year increase in ticket bookings for parents traveling to their children's workplaces for the holiday [1]. Group 3: Policy Support - Continuous policy support has been crucial for the recovery of the tourism sector, with multiple government initiatives aimed at boosting consumption and expanding travel services [3]. - In 2025, domestic tourism saw 4.998 billion trips, an 18% increase, with total spending reaching 4.85 trillion yuan, up 11.5% [3]. - The tourism market is expected to grow by 10% in 2025, driven by sustained leisure travel demand and experiential consumption [3]. Group 4: Institutional Investment - Institutional interest in the tourism sector is rising, with 25 out of 55 A-share tourism stocks receiving ratings from five or more institutions [3][4]. - The National Social Security Fund has invested heavily in eight tourism stocks, with a total market value of 3.094 billion yuan, favoring airlines and duty-free operators [4]. - Spring Airlines reported a 23.68% year-on-year increase in available ton-kilometers in December 2025, indicating strong operational recovery [4]. Group 5: Future Outlook - The upcoming Spring Festival is expected to lead to a peak in tourism consumption, benefiting related companies [4]. - Long-term prospects for the tourism sector are bolstered by the implementation of duty-free policies, recovery of international routes, and ongoing service consumption policies [4]. - Investors are advised to focus on leading companies in the duty-free, airline, and premium scenic spot sectors that are likely to benefit from consumption upgrades and policy advantages [4].

Core Viewpoint - The practice of charging for seat selection in airlines is seen as a method to increase revenue by locking premium seats, which raises concerns about consumer rights and fair trading [1] Group 1: General Findings - The survey conducted by Jiangsu Consumer Protection Committee revealed that all 10 selected domestic airlines have implemented seat locking practices, with no airline fully opening all economy class seats [2] - The average seat locking rate across the surveyed routes is 38.7%, with some airlines like Spring Airlines and Shenzhen Airlines exceeding 60% and 50% respectively [2] Group 2: Payment for Unlocking Seats - Many airlines require consumers to use miles or membership points to unlock preferred seats, with specific examples showing that certain seats can require up to 2000 points for unlocking [3] - Some airlines have introduced additional paid options for purchasing points or miles, further pushing consumers towards paid unlocking methods [3] Group 3: Lack of Transparency - Airlines provided vague explanations for seat locking, citing reasons such as reserving seats for special passengers or maintaining flight balance, which do not align with the high locking rates observed [4][5] - Customer service responses were often unclear, failing to provide solid justifications for the locking practices [5] Group 4: Unfair Terms - The seat selection agreements of the airlines contain unfair terms, lacking clear communication about locking rules and fees, which may infringe on consumer rights [6] - Airlines are currently evaluating their policies to balance revenue optimization with consumer rights and improve transparency in seat selection information [6]

Core Viewpoint - The investigation by Jiangsu Consumer Protection Committee reveals that the practice of locking seats by airlines is widespread and raises concerns about consumer rights and transparency in the airline industry [3][4]. Group 1: Investigation Findings - The survey included 10 major domestic airlines, all of which confirmed the existence of seat locking practices, with no airline fully opening all economy class seats [4]. - The average seat locking ratio across the surveyed airlines is 38.7%, with some routes showing locking ratios as high as 62.1%, such as Spring Airlines' "Nanjing-Lanzhou" route [4]. - Preferred seating areas, such as front rows and exit rows, are commonly included in the locked categories, with higher fees or points required for unlocking these seats [4]. Group 2: Payment and Redemption Issues - Some airlines require consumers to use miles or membership points to unlock preferred seats, with specific examples showing redemption thresholds of 2000 points for premium seats [5]. - Airlines have introduced additional paid options for purchasing points or miles, further pushing consumers towards paid unlocking methods [6]. Group 3: Transparency and Communication - Airlines provided vague explanations for seat locking, citing reasons like reserving seats for special passengers or maintaining flight balance, which contradicts the high locking ratios observed [7]. - Customer service responses were often unclear, failing to provide satisfactory explanations for the locking practices, which raises concerns about consumer rights [7]. Group 4: Unfair Terms and Conditions - The seat selection agreements of the airlines contain unfair terms, lacking clear communication about locking rules and fees, which may infringe on consumer rights [8]. - Airlines often use ambiguous language in their agreements, avoiding the disclosure of free seat availability and locking practices, which benefits the airlines at the expense of consumer transparency [8].

Group 1: Core Insights - The tourism and travel sector in China is experiencing significant growth, driven by increased consumer demand and favorable government policies [5][6] - The upcoming Spring Festival is expected to boost travel, with a notable increase in ticket bookings and travel service reservations [4][6] - Social security funds have heavily invested in key tourism stocks, indicating strong institutional interest in the sector [6] Group 2: Company Performance - China Duty Free Group (中国中免) has seen a cumulative stock increase of 30.91% since October 2025, supported by its expansion into city duty-free stores [6] - Spring Airlines (春秋航空) reported a 23.68% year-on-year increase in available ton-kilometers in December 2025, reflecting growth in operational capacity [7] - China National Aviation Holding (中国国航) and Spring Airlines are among the top holdings by social security funds, with market values of 5.56 billion and 6.01 billion yuan respectively [6] Group 3: Market Trends - The domestic tourism market showed strong recovery in 2025, with 4.85 trillion yuan in spending, an 11.5% increase year-on-year [5] - The "reverse Spring Festival" trend is gaining traction, with a 35% increase in ticket bookings for parents traveling to their children's work locations [4] - The Wind tourism index rose by 2.5% on January 19, 2026, indicating a positive market sentiment ahead of the Spring Festival [3]

Core Insights - The aviation and airport sector experienced a significant increase of 3.36% on January 19, with China Eastern Airlines leading the gains [1] - The Shanghai Composite Index closed at 4114.0, up 0.29%, while the Shenzhen Component Index closed at 14294.05, up 0.09% [1] Stock Performance - China Eastern Airlines (600115) closed at 6.13, up 6.06%, with a trading volume of 1.6115 million shares and a transaction value of 979 million [1] - Southern Airlines (600029) closed at 7.75, up 4.31%, with a trading volume of 937,300 shares and a transaction value of 720 million [1] - Air China (601111) closed at 8.81, up 4.14%, with a trading volume of 1.3003 million shares and a transaction value of 1.141 billion [1] - Spring Airlines (601021) closed at 58.46, up 3.87%, with a trading volume of 75,900 shares and a transaction value of 441 million [1] - Other notable performances include Xiamen Airport (600897) at 17.27, up 2.37%, and Shanghai Airport (600009) at 31.72, up 1.05% [1] Capital Flow - The aviation and airport sector saw a net inflow of 27.1067 million in main funds, while retail funds experienced a net inflow of 54.5283 million [2] - The sector's overall capital flow indicates a mixed sentiment, with main funds showing a net outflow in some stocks while retail investors contributed positively [2][3] Individual Stock Capital Flow - Hainan Airlines (600221) had a main fund net outflow of 56.1893 million, while retail investors showed a net outflow of 28.2785 million [3] - Shanghai Airport (600009) recorded a main fund net inflow of 41.0025 million, but retail investors had a net outflow of 50.1886 million [3] - Southern Airlines (600029) saw a main fund net inflow of 23.9450 million, with retail investors also showing a net outflow of 13.4306 million [3] - Other stocks like Xiamen Airport (600897) and Shenzhen Airport (000089) also reflected varied capital flows, indicating differing investor sentiments across the sector [3]

Core Viewpoint - Spring Airlines is actively expanding its flight capacity and optimizing its route network to meet the travel demand during the 2026 Spring Festival travel season, which is expected to run from February 2 to March 13, lasting a total of 40 days [1]. Group 1: Flight Capacity and Route Expansion - Spring Airlines plans to significantly increase the number of flights during the Spring Festival, including additional flights from Chengdu to Bangkok, with a schedule from February 15 to March 1, operating on Mondays, Wednesdays, Fridays, and Sundays [1]. - The airline will also increase the frequency of flights from Chengdu to Phuket to daily service during the peak travel period from February 16 to February 23 [1]. - Regular international flights from Chengdu to Phnom Penh will continue to provide convenience for travelers during the Spring Festival [1]. Group 2: Travel Products and Promotions - Spring Airlines is offering a variety of travel products targeting popular tourist cities such as Shanghai, Qingdao, Jinan, Enshi, and Chaoshan, in addition to winter tourism in Xinjiang [2]. - To support the upcoming Spring Festival travel rush, Spring Airlines has launched promotional activities such as "Early Purchase for Spring Festival," offering discounts including 1 yuan tickets, 50% off baggage fees, and various other incentives [2].

Investment Rating - The report maintains a "Recommendation" rating for the aviation industry, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [61]. Core Insights - The domestic passenger load factor for listed airlines continues to improve, with Spring Airlines leading at 92.2% in December, and Air China showing the highest year-on-year increase [1]. - The report highlights a structural improvement in demand for the aviation industry, with a notable recovery in cross-border travel demand outpacing domestic demand [9]. - The report emphasizes the high elasticity of prices under high load factors, indicating potential for price increases as the industry recovers [9]. Summary by Sections 1) Domestic Routes - In December, the ASK (Available Seat Kilometers) growth was led by Spring Airlines at 16.4%, followed by China Southern Airlines at 6.8% and Air China at 4.2% [2]. - The RPK (Revenue Passenger Kilometers) growth for December was also led by Spring Airlines at 17.7%, with Air China at 10.6% and China Southern Airlines at 6.9% [2]. - For the cumulative data from January to December, East China Airlines had the highest ASK growth at 10.7%, while Spring Airlines and East China Airlines both had RPK growth of 9.1% [2]. 2) International Routes - In December, China Southern Airlines led with an ASK growth of 25.8%, followed by East China Airlines at 9.4% and Air China at 4.1% [3]. - The RPK growth for December was also led by China Southern Airlines at 22.8%, with East China Airlines at 11.0% and Air China at 9.1% [3]. - For the cumulative data from January to December, 吉祥航空 (Juneyao Airlines) showed the highest ASK growth at 37.6% and RPK growth at 43.5% [3]. 3) Regional Routes - In December, Spring Airlines had the highest ASK growth at 92.0%, while 吉祥航空 (Juneyao Airlines) experienced a decline of 20.2% [4]. - The RPK growth for December was again led by Spring Airlines at 97.5%, with 吉祥航空 (Juneyao Airlines) showing a decline of 15.9% [4]. - For the cumulative data from January to December, China Southern Airlines had the highest ASK growth at 3.1%, while Spring Airlines and 吉祥航空 (Juneyao Airlines) both showed significant declines [4]. 4) Passenger Load Factor - In December, Spring Airlines had a load factor of 91.5%, with a year-on-year increase of 0.7% [5]. - For the cumulative data from January to December, Spring Airlines maintained a load factor of 91.5%, with Air China at 81.9% showing a year-on-year increase of 2.0% [5]. - The total fleet of the five listed airlines increased by 15 aircraft by December 2025, with a year-on-year fleet growth of 4% [5].

Market Overview - The aviation and airport sector declined by 0.78% on January 16, with CITIC Hainan Airlines leading the drop [1] - The Shanghai Composite Index closed at 4101.91, down 0.26%, while the Shenzhen Component Index closed at 14281.08, down 0.18% [1] Stock Performance - Notable stock performances included: - Huaxia Airlines (002928) increased by 2.06% to close at 10.90 with a trading volume of 221,100 shares and a turnover of 239 million yuan [1] - Hainan Airlines (600221) rose by 0.60% to 69.1 with a trading volume of 2.51 million shares and a turnover of 423 million yuan [1] - Xiamen Airport (600897) increased by 0.42% to 16.87 with a trading volume of 35,800 shares and a turnover of 60.46 million yuan [1] - China Eastern Airlines (600115) decreased by 0.86% to 5.78 with a trading volume of 1.33 million shares and a turnover of 770 million yuan [1] - China Southern Airlines (600029) fell by 1.46% to 7.43 with a trading volume of 795,100 shares and a turnover of 594 million yuan [2] Capital Flow - The aviation and airport sector experienced a net outflow of 477 million yuan from institutional investors, while retail investors saw a net inflow of 257 million yuan [2] - The capital flow for individual stocks showed: - Xiamen Airport had a net inflow of 121.82 million yuan from retail investors, despite a net outflow of 341.39 million yuan from institutional investors [3] - CITIC Hainan Airlines faced a significant net outflow of 75.42 million yuan from institutional investors, while retail investors contributed a net inflow of 57.25 million yuan [3] - China Eastern Airlines had a net outflow of 73.70 million yuan from institutional investors, with retail investors contributing a net inflow of 45.21 million yuan [3]