Investment Rating - The report maintains an "Overweight" rating for the aviation transportation industry [1] Core Viewpoints - The aviation sector is expected to see a bottoming out of its economic cycle, with potential improvements in demand and pricing as the supply growth remains low [5][8] - Despite a decline in ticket prices during the peak summer season, there are signs of recovery in business travel demand, which may lead to better pricing in the near future [5][8] Summary by Sections Investment Recommendations - China National Aviation (601111 CH): Buy, Target Price: 9.25 CNY [4] - China Eastern Airlines (600115 CH): Buy, Target Price: 4.80 CNY [4] - China Southern Airlines (600029 CH): Buy, Target Price: 7.35 CNY [4] - Spring Airlines (601021 CH): Buy, Target Price: 67.80 CNY [4] - 吉祥航空 (603885 CH): Buy, Target Price: 16.25 CNY [4] - 华夏航空 (002928 CH): Buy, Target Price: 13.65 CNY [4] - Cathay Pacific (293 HK): Buy, Target Price: 13.20 HKD [4] Industry Performance - In August, the three major airlines and Spring Airlines saw a 5.0% increase in available seat kilometers (ASK) and a 5.8% increase in revenue passenger kilometers (RPK), leading to an overall passenger load factor increase of 0.6 percentage points to 86.8% [5][11] - Domestic ticket prices showed a year-on-year decline of 6.5% during the peak summer season, but there was a 2.5% increase in ticket prices in early September [5][8] Company-Specific Insights - China National Aviation reported a revenue of 80.757 billion CNY in the first half of 2025, a 1.6% increase year-on-year, with a net loss of 1.806 billion CNY, narrowing by 35.1% [23] - China Eastern Airlines achieved a revenue of 66.822 billion CNY in the first half of 2025, a 4.1% increase year-on-year, with a net loss of 1.592 billion CNY, narrowing by 42.5% [23] - China Southern Airlines reported a revenue of 86.291 billion CNY in the first half of 2025, a 1.8% increase year-on-year, with a net loss of 1.533 billion CNY, which is a 24.8% increase in loss year-on-year [24] - Spring Airlines reported a revenue of 10.304 billion CNY in the first half of 2025, a 4.3% increase year-on-year, with a net profit of 1.169 billion CNY, a 14.1% decrease year-on-year [24] - 吉祥航空 reported a revenue of 11.067 billion CNY in the first half of 2025, a 1.0% increase year-on-year, with a net profit of 0.505 billion CNY, a 3.3% increase year-on-year [24] - 华夏航空 reported a revenue of 3.610 billion CNY in the first half of 2025, a 12.4% increase year-on-year, with a net profit of 0.251 billion CNY, an increase of 859.0% year-on-year [24] - Cathay Pacific reported a revenue of 54.309 billion HKD in the first half of 2025, a 9.5% increase year-on-year, with a net profit of 3.651 billion HKD, a 1.1% increase year-on-year [24]

Group 1 - The three major Hong Kong airline stocks, including Air China, China Southern Airlines, and China Eastern Airlines, experienced collective gains, with Air China rising approximately 2%, China Southern Airlines increasing by 1.6%, and China Eastern Airlines up over 1% [1] - Goldman Sachs reported a strong rebound in the mainland aviation industry for the second quarter, but noted that summer performance was not ideal, with domestic air travel demand remaining weak [1] - The firm predicts a significant narrowing of the year-on-year decline in international ticket prices, while domestic ticket prices may improve starting in September [1] Group 2 - Air China's passenger turnover increased by 3.2% year-on-year in August, indicating a gradual recovery in profitability [2] - China Southern Airlines reported an increase in passenger turnover of 5.97% year-on-year and a cargo turnover increase of 5.48% in August [2] - China Eastern Airlines saw an 8.72% year-on-year increase in passenger turnover in August and plans to hold a joint mid-term performance briefing on September 12 [2]

Core Insights - China National Airlines announced an increase in passenger turnover volume by 3.2% year-on-year for August 2025, measured in revenue passenger kilometers [2] - The average passenger load factor improved to 83.7%, up by 0.8 percentage points year-on-year [2] Passenger Operations - Passenger capacity input, measured in available seat kilometers, increased by 2.3% year-on-year [2] - Domestic passenger capacity input decreased by 1.2%, with passenger turnover remaining flat [2] - International passenger capacity input rose by 12.6%, with passenger turnover increasing by 12.9% [2] - Regional passenger capacity input fell by 5.7%, with passenger turnover declining by 2.2% [2] - The average load factor for domestic routes increased by 1.1 percentage points, while international routes saw an increase of 0.2 percentage points, and regional routes improved by 2.9 percentage points [2] Cargo Operations - Cargo capacity input, measured in available cargo ton kilometers, increased by 1.5% year-on-year [2] - Cargo and mail turnover, measured in revenue cargo ton kilometers, rose by 10.2% year-on-year [2] - The cargo load factor improved to 42.1%, up by 3.3 percentage points year-on-year [2]

Core Viewpoint - China National Airlines (601111) (00753) reported an increase in passenger turnover volume and capacity for August 2025, indicating a positive trend in both domestic and international operations [1] Group 1: Passenger Operations - The group's passenger turnover volume (measured in revenue passenger kilometers) increased by 3.2% year-on-year [1] - Passenger capacity (measured in available seat kilometers) rose by 2.3% year-on-year [1] - Domestic passenger capacity decreased by 1.2%, while passenger turnover remained flat [1] - International passenger capacity increased by 12.6%, with passenger turnover rising by 12.9% [1] - Regional passenger capacity fell by 5.7%, and passenger turnover decreased by 2.2% [1] - The average passenger load factor was 83.7%, up by 0.8 percentage points year-on-year [1] - Domestic routes saw a load factor increase of 1.1 percentage points, international routes increased by 0.2 percentage points, and regional routes rose by 2.9 percentage points [1] Group 2: Cargo Operations - Cargo capacity (measured in available cargo ton kilometers) increased by 1.5% year-on-year [1] - Cargo and mail turnover (measured in revenue cargo ton kilometers) rose by 10.2% year-on-year [1] - The cargo load factor was 42.1%, up by 3.3 percentage points year-on-year [1] Group 3: Fleet Expansion - In August 2025, the group introduced 3 A320 series aircraft and 3 B737 series aircraft [1] - As of the end of August 2025, the group operated a total of 941 aircraft, including 419 owned, 228 under finance leases, and 294 under operating leases [1]

Core Viewpoint - China National Airlines (00753) reported an increase in passenger turnover and capacity for August 2025, indicating a positive trend in both domestic and international operations [1] Passenger Operations - The group's consolidated passenger turnover (measured in revenue passenger kilometers) increased by 3.2% year-on-year [1] - Passenger capacity (measured in available seat kilometers) rose by 2.3% year-on-year [1] - Domestic passenger capacity decreased by 1.2%, with passenger turnover remaining flat [1] - International passenger capacity increased by 12.6%, with passenger turnover rising by 12.9% [1] - Regional passenger capacity fell by 5.7%, with passenger turnover declining by 2.2% [1] - The average passenger load factor was 83.7%, up by 0.8 percentage points year-on-year [1] - Domestic routes saw an increase of 1.1 percentage points in load factor, while international routes increased by 0.2 percentage points and regional routes by 2.9 percentage points [1] Cargo Operations - Cargo capacity (measured in available cargo ton kilometers) increased by 1.5% year-on-year [1] - Cargo and mail turnover (measured in revenue cargo ton kilometers) rose by 10.2% year-on-year [1] - The cargo load factor was 42.1%, up by 3.3 percentage points year-on-year [1] Fleet Development - In August 2025, the group introduced 3 A320 series aircraft and 3 B737 series aircraft [1] - As of the end of August 2025, the group operated a total of 941 aircraft, including 419 owned, 228 under finance leases, and 294 under operating leases [1]

Core Insights - The company reported an increase in passenger turnover volume by 3.2% year-on-year, measured in revenue passenger kilometers, for the combined group in August 2025 [1] - The average passenger load factor improved to 83.7%, up by 0.8 percentage points year-on-year [1] Passenger Operations - Passenger capacity input, measured in available seat kilometers, increased by 2.3% year-on-year [1] - Domestic passenger capacity input decreased by 1.2%, with passenger turnover remaining flat year-on-year [1] - International passenger capacity input rose by 12.6%, with passenger turnover increasing by 12.9% year-on-year [1] - Regional passenger capacity input fell by 5.7%, with passenger turnover declining by 2.2% year-on-year [1] - The average load factor for domestic routes increased by 1.1 percentage points, for international routes by 0.2 percentage points, and for regional routes by 2.9 percentage points [1] Cargo Operations - Cargo capacity input, measured in available cargo ton kilometers, increased by 1.5% year-on-year [1] - Cargo mail turnover, measured in revenue cargo ton kilometers, rose by 10.2% year-on-year [1] - The cargo load factor improved to 42.1%, up by 3.3 percentage points year-on-year [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不會就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 中國北京，二零二五年九月十五日 於本公告日期，本公司的董事為馬崇賢先生、王明遠先生、崔曉峰先生、Patrick Healy （賀以禮）先生、肖鵬先生、徐念沙先生*、禾雲先生*、譚允芝女士*及高春雷先生*。 * 本公司獨立非執行董事 证券代码：601111 股票简称：中国国航 公告编号：2025-040 （於中華人民共和國註冊成立的股份有限公司） （股份代號：00753） 二零二五年八月的主要營運數據公告 隨附公告（「上交所公告」）乃由中國國際航空股份有限公司（「中國國航」）於二零二五年九 月十五日在上海證券交易所刊發，其中載有中國國航及其附屬公司（統稱「本集團」）二零 二五年八月的合併營運數據。本公告附上上交所公告乃由中國國航根據香港聯合交易所 有限公司證券上市規則（「上市規則」）第13.09條及第13.10B條，以及香港法例第571章證 券及期貨條例第XIVA部項下之內幕消息條文（定義見上市規則）而作 ...

Group 1 - The core viewpoint is that the inbound tourism market in Beijing is experiencing significant recovery, with a notable increase in the number of foreign tourists and tourism consumption [1] - As of July 2023, the number of inbound tourists reached 2.916 million, representing a year-on-year growth of 46.2%, and tourism consumption amounted to $3.78 billion, up 49.6% [1] - Since March 2023, the monthly inbound tourist numbers have consistently exceeded 300,000, with significant peaks in April, May, and June, averaging over 500,000 [1] Group 2 - Various measures have been implemented to promote inbound tourism, including the release of a special action plan focusing on product, promotion, service, and support [1] - Beijing Border Inspection Station has adopted a "dual-channel inspection" model to reduce waiting times for travelers and enhance customs efficiency [2] - Airlines are actively restoring and increasing international routes, with Air China operating over 1,200 destinations globally and launching 71 routes under the Belt and Road Initiative [2]

Core Insights - China International Airlines (Air China) has established a global network reaching over 1,200 destinations and has launched 71 routes under the Belt and Road Initiative [1][2] - The inbound tourism market in China is experiencing a strong recovery, with increasing numbers of foreign tourists choosing China as a travel destination [1] - Air China operates 129 international and regional routes, with 254 flights daily connecting China to major global cities, playing a crucial role in facilitating inbound tourism [1] Group 1 - Air China has opened 71 routes related to the Belt and Road Initiative, demonstrating its commitment to national strategies [1] - The airline has developed an Asia-Pacific hub with 52 routes connecting 30 cities across 21 countries, and has established intercontinental corridors with 16 routes linking 9 cities in 8 countries [1] - The airline's comprehensive inbound tourism solution includes a partnership with the China Cultural and Tourism Exchange Center to enhance travel experiences for foreign visitors [2] Group 2 - Air China aims to leverage its network and service advantages to promote deep integration of aviation and cultural tourism, optimizing services for inbound travelers [2] - The airline's initiatives are designed to showcase China's diverse tourism resources and the unique charm of Chinese traditional culture to more international visitors [2]

Core Viewpoint - China National Airlines (601111.SH) reported an increase in passenger turnover and cargo turnover for August 2025, indicating a positive trend in operational performance [1] Passenger Operations - The company's consolidated passenger turnover (measured in revenue passenger kilometers) increased by 3.2% year-on-year [1] - Passenger capacity input (measured in available seat kilometers) rose by 2.3% year-on-year [1] - Domestic passenger capacity input decreased by 1.2%, with passenger turnover remaining flat [1] - International passenger capacity input increased by 12.6%, with passenger turnover rising by 12.9% [1] - Regional passenger capacity input fell by 5.7%, with passenger turnover declining by 2.2% [1] - The average passenger load factor was 83.7%, up by 0.8 percentage points year-on-year [1] - Domestic routes saw an increase in load factor by 1.1 percentage points, international routes by 0.2 percentage points, and regional routes by 2.9 percentage points [1] Cargo Operations - Cargo capacity input (measured in available cargo ton kilometers) increased by 1.5% year-on-year [1] - Cargo and mail turnover (measured in revenue cargo ton kilometers) rose by 10.2% year-on-year [1] - The cargo load factor was 42.1%, up by 3.3 percentage points year-on-year [1]