Core Viewpoint - The article highlights the contrasting fortunes within the low-cost airline industry, exemplified by the struggles of Happy Airlines against the backdrop of profitable competitors like Spring Airlines and Juneyao Airlines. It emphasizes that the challenges faced by Happy Airlines stem from internal issues rather than the overall industry climate [5][8][15]. Group 1: Industry Overview - The low-cost airline sector has seen significant growth, with the market share of low-cost carriers in the Asia-Pacific region increasing from 28.1% in 2020 to 32.4% in 2024 for domestic routes, and from 8.4% to 18.6% for international routes [11]. - In China, the low-cost airline market accounted for only 8.1% of domestic routes as of last year, indicating substantial growth potential as the market matures [11]. - Projections suggest that by 2025, the Chinese low-cost airline market could exceed 120 billion yuan, representing 25% of the total civil aviation transport market, with an annual compound growth rate of 18% [11][12]. Group 2: Happy Airlines' Struggles - Happy Airlines has faced continuous operational challenges since its inception, including a lack of profitability and high debt levels, with a reported asset-liability ratio exceeding 200% as of April this year [19][20]. - The airline's fleet primarily consists of the New Zhou 60 aircraft, which has not been well-received in the market, compounded by competition from high-speed rail networks [19]. - Despite attempts to diversify its fleet by introducing Boeing 737 aircraft, the airline's financial situation worsened due to the pandemic and increased operational costs [19][20]. Group 3: Competitive Landscape - Major low-cost carriers like Spring Airlines have established strong market positions through efficient operational strategies, such as maximizing seating capacity and minimizing operational costs [24][25]. - Traditional full-service airlines are increasingly competing in the low-cost segment, leading to price wars that blur the lines between low-cost and full-service offerings [28][29]. - The overall aviation industry is experiencing "profit anxiety," with average ticket prices declining significantly, impacting profitability across the board [30][31].

Core Insights - The event "Jinglongyun・Ruyixing" focused on the deep integration of aviation and tourism, highlighting the collaboration between Gansu and Hubei provinces for the summer flight season of 2025 [1] Group 1: Event Overview - The event was co-hosted by Gansu Airport Group, Hubei Airport Group, and Tongcheng Travel, attracting over 120 industry elites from aviation, tourism, and media sectors [2] - Major airlines such as China Southern Airlines and China Eastern Airlines participated, showcasing their latest travel products [2] Group 2: Flight Network and Services - Gansu Airport Group plans to operate over 200 passenger routes this summer, connecting nearly 100 cities, with 12 new routes linking Gansu and Hubei [2] - New domestic routes include "Lanzhou-Zhangye-Dunhuang" and "Lanzhou-Jinchang-Jiayuguan," increasing the total number of domestic routes to 27 [2] - The introduction of the "Jinglan Fly・Ruyixing" transfer service aims to enhance passenger convenience with features like expedited check-in and free accommodation [2] Group 3: Data Analysis and Marketing Strategies - Tongcheng Travel utilized big data to analyze travel preferences and spending habits of tourists from Gansu and Central China [3] - The event promoted the "Air-Rail Intermodal" travel solution and exclusive discounts to encourage travel between Gansu and Hubei [3] - The collaboration signifies a deeper partnership in optimizing flight routes and sharing tourism resources between the two provinces [3]

Group 1 - The core viewpoint of the report is that the aviation industry is expected to see a turnaround in performance starting in 2025, driven by declining oil prices and long-term supply-demand optimization [1] - The overall trend in the aviation sector from 2025 onwards is characterized by increased volume and stable pricing, with international routes nearing full recovery [1][2] - Airlines are shifting their strategy from price prioritization to a balance of volume and price, with expectations of rising capacity and load factors in 2024, despite pressure on ticket prices [2] Group 2 - Supply of capacity remains constrained due to factors such as supply chain bottlenecks and trade frictions, with aircraft delivery rates expected to be below expectations in the coming years [3] - The significant drop in oil prices is expanding profit margins for airlines, with a 1% decrease in oil prices leading to cost reductions or profit increases for major airlines [4] - If fuel prices remain low in 2025, it will provide substantial support to airline profits [4]

Core Viewpoint - The civil aviation industry is experiencing a recovery in passenger transport volume growth, with supply remaining low and price declines narrowing. The performance during the May Day holiday indicates positive trends in revenue management for airlines, suggesting an optimistic outlook for price improvements in the aviation sector [1]. Group 1: Operational Data - In April 2025, all airlines reported an increase in operational volume, with growth rates slightly higher than in March. Among major airlines, Eastern Airlines showed the highest growth rate, while Spring Airlines outperformed 吉祥航空 among private carriers. The passenger load factor for the three major airlines continued to rise, with Southern Airlines and Eastern Airlines exceeding 85%, while Spring Airlines experienced a slight decline and 吉祥航空 saw a slight increase [1]. - Domestic flight volumes in April 2025 showed a significant recovery compared to March, with a slight year-on-year increase compared to April 2024. Major airlines reported a slight increase in domestic capacity, with Spring Airlines increasing capacity and 吉祥航空 slightly decreasing it. The passenger load factor for the three major airlines and Spring Airlines improved, while 吉祥航空 saw a decline [2]. Group 2: International Market Performance - The international and regional flight markets are steadily expanding, with significant recovery in routes to Japan, South Korea, New Zealand, Malaysia, and Vietnam. Among major airlines, Air China and Eastern Airlines showed rapid growth in capacity, while 吉祥航空 shifted a significant portion of its capacity to international routes. The load factors for international flights varied, with Eastern Airlines, Southern Airlines, and 吉祥航空 showing improvements, while Air China and Spring Airlines experienced declines [2]. Group 3: Supply and Cost Factors - The introduction of new aircraft remains low, with the civil aviation fleet expected to grow by only 2.8% to 4,126 aircraft in 2024, including a reduction of 9 wide-body aircraft. In the first four months of 2025, only 64 new aircraft were introduced, indicating slow supply growth. Additionally, recent declines in oil prices and stable exchange rates are expected to positively impact the cost structure of the aviation industry, leading to potential improvements in second-quarter performance [3].

证券研究报告：航空运输|点评报告 行业投资评级 强于大市|维持 行业基本情况 | 收盘点位 | | 2000.5 | | --- | --- | --- | | 52 | 周最高 | 2398.85 | | 52 周最低 | | 1625.59 | 分析师:曾凡喆 SAC 登记编号:S1340523100002 Email:zengfanzhe@cnpsec.com 近期研究报告 《6 月客座率超 19 年同期，中报预告基 本符合预期》 - 2024.07.16 航空运输 4 月数据点评 客座率同比走高，价格预期改善 l 各航司披露 2025 年 4 月运营数据 各航空公司披露 2025 年 4 月运营数据。4 月各航司整体运量保 持增长，增速略快于 3 月。各航司间运营表现有所分化，大航中，东 航运量增速靠前，民营航司中，春秋增速快于吉祥。客座率方面，三 大航客座率继续走高，南航、东航客座率突破 85%，春秋客座率略有 下降，吉祥客座率略有上升。 行业相对指数表现（相对值） 2024-05 2024-07 2024-10 2024-12 2025-03 2025-05 -20% -16% -12% -8% ...

Investment Rating - The investment rating for the airline transportation industry is "Positive" [2][4]. Core Viewpoints - The report highlights a significant narrowing of the year-on-year decline in ticket prices, with expectations for continued recovery in ticket prices during the peak travel season due to strong demand [3][5]. - The report suggests focusing on key airlines such as Air China, China Southern Airlines, Spring Airlines, Juneyao Airlines, and China Eastern Airlines as potential investment opportunities [3][4]. Summary by Sections 1. Investment Recommendations - The report indicates that the passenger load factor remains high, with strong travel demand during the May Day holiday, leading to a noticeable reduction in the year-on-year decline in ticket prices [3][4]. 2. Industry Ticket Price Trends - The year-on-year decline in industry ticket prices has significantly narrowed, with ticket prices in May showing a decline of only 3.0% compared to the previous year [5][27]. - The average domestic ticket price from the beginning of 2025 until May 18 is 847 yuan, reflecting a 10.0% year-on-year decrease [5][27]. 3. Supply and Demand Dynamics - The supply side is affected by fleet issues, with potential delays in aircraft introductions due to supply chain problems and limited short-term improvements in utilization rates due to engine maintenance [3][4]. - The demand side shows sustained growth in travel demand during peak seasons, with expectations for improved supply-demand dynamics and a potential rise in ticket prices [3][4]. 4. Operational Performance of Airlines - In April 2025, domestic airlines experienced a year-on-year increase in capacity and turnover, with passenger load factors exceeding levels from 2019 [47][49]. - The report notes that China Southern Airlines had the highest net increase in aircraft in April, adding five aircraft to its fleet [47][48]. 5. Fuel Price Trends - The average price of aviation fuel has shown a continuous year-on-year decline, with May's average price at 5,385 yuan per ton, down 19.0% from the previous year [41][41]. - Brent crude oil prices have also decreased, with a year-on-year decline of 23.6% as of May 16, 2025 [41][41]. 6. Exchange Rate Stability - The exchange rate has remained stable, with the USD to RMB exchange rate at 7.1916 as of May 19, 2025, reflecting a slight increase of 0.04% from the end of 2024 [41][41].

Investment Rating - The report maintains an "Overweight" rating for the aviation transportation sector [5]. Core Insights - The aviation industry is experiencing a notable improvement in passenger load factors, with April's load factor increasing by 2.8 percentage points to 84.3% year-on-year, driven by a 7.8% increase in capacity [1][2]. - Revenue management strategies are beginning to show positive results, with domestic ticket prices increasing by 11.5% during the week of May 5-11 [1][4]. - The supply growth in the aviation sector is expected to remain low, which, combined with effective revenue management, suggests a potential for improved profitability for airlines throughout the year [1][4]. Summary by Sections Passenger Load Factors - The three major airlines reported a load factor increase of 3.1 percentage points to 84.0% in April, with domestic routes showing a 3.9 percentage point increase to 85.3% [2][10]. - Spring Airlines experienced a decline in load factor by 2.5 percentage points to 88.2%, while Juneyao Airlines showed a strong performance with a load factor increase of 2.9 percentage points to 86.2% [3][10]. Capacity and Revenue - The total available seat kilometers (ASK) for the three major airlines and Spring Airlines increased by 7.8% year-on-year, indicating a recovery in capacity [10]. - Revenue passenger kilometers (RPK) also rose by 11.5%, reflecting a strong demand recovery [10]. Future Outlook - The report anticipates that the supply-demand structure will continue to improve, leading to a favorable environment for revenue management and profitability enhancement during the peak summer travel season [4][21]. - The expected low supply growth, coupled with rising ticket prices, is likely to support airlines' earnings recovery [1][4]. Stock Recommendations - The report recommends a "Buy" rating for several airlines, including China National Aviation (601111 CH), China Eastern Airlines (600115 CH), and Spring Airlines (601021 CH), with target prices set at 10.20, 5.15, and 69.10 respectively [20][21].

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The shipping industry is experiencing a surge in demand due to a recent temporary reduction in tariffs between China and the US, leading to a significant increase in shipping volumes on the US route. The average booking volume surged by 277% compared to the previous week [5] - The Shanghai Export Container Freight Index (SCFI) rose by 10.0% week-on-week, indicating a strong recovery in shipping rates, particularly for routes to the US [6] - The logistics sector is showing resilience, with express delivery volumes in April increasing by 19.1% year-on-year, reflecting robust demand across various sectors [9] - The airline industry is expected to benefit from macroeconomic recovery, with a long-term supply-demand imbalance favoring growth in the sector [12] Summary by Sections Shipping Vessels - The recent tariff reductions have led to a surge in demand for shipping services, particularly on the US route, with a projected increase in freight rates over the next 2-3 months due to supply constraints [5] - The average weekly capacity for the US route is expected to be 500,000 TEU, down 6% from last year [5] - The oil tanker market is facing supply tightness due to limited new orders and an aging fleet, which is expected to sustain high demand in the coming years [12] Express Logistics - In April, the express delivery industry in China saw a business volume of 16.32 billion pieces, a year-on-year increase of 19.1%, with revenue reaching 121.28 billion yuan, up 10.8% [9] - The concentration index for express delivery brands (CR8) was 86.7, indicating a stable competitive landscape [9] Aviation and Airports - The airline industry is poised for growth due to low supply growth and recovering demand, with key companies to watch including China Southern Airlines and Air China [12] - The passenger transport volume in March was approximately 59 million, reflecting a year-on-year increase of 3.5% [50] Overall Market Performance - From May 12 to May 16, the transportation index rose by 2.12%, outperforming the Shanghai Composite Index [17] - The shipping sector saw the highest increase at 7.42%, indicating strong market performance [17]

Investment Rating - The report maintains an "Overweight" rating for the transportation sector [2]. Core Insights - The aviation sector is expected to see improvements in both volume and pricing, with optimistic expectations continuing to develop. High passenger load factors are anticipated to drive ticket prices upward, supported by regulatory measures from the Civil Aviation Administration [4][5]. - The shipping industry is poised for a dual increase in volume and pricing due to multiple catalysts, including replenishment demand and seasonal peaks. The report highlights the potential for significant price increases in the shipping sector [5][6]. Summary by Sections Investment Highlights - Key companies recommended for investment include Spring Airlines, China Eastern Airlines, and China Southern Airlines, which are expected to show strong performance due to their operational resilience and market positioning [11]. - The report emphasizes the importance of infrastructure improvements and policy changes that could benefit the transportation sector, particularly in aviation and shipping [4][5]. Operational Tracking - Data from major airlines shows a positive trend in passenger traffic and load factors, with Southern Airlines reporting a 4.91% increase in available seat kilometers (ASK) in Q1 2025 compared to the previous year [14]. - The report tracks significant increases in cargo volumes across various transportation modes, indicating a robust recovery in logistics and freight services [5][6]. Aviation Data Tracking - The report provides detailed metrics on airline performance, including ASK and revenue passenger kilometers (RPK), showing growth across major carriers. For instance, China Eastern Airlines reported a 10.89% increase in RPK in Q1 2025 [14]. - The average ticket price for economy class during the Dragon Boat Festival is projected to rise, reflecting a strong demand environment [4]. Shipping Data Tracking - The report notes a 9.98% week-on-week increase in the SCFI index, indicating a positive trend in shipping rates, despite a year-on-year decline of 41.31% [5]. - The report highlights the impact of tariff changes on shipping demand, particularly in the US-China trade context, which is expected to stimulate replenishment and seasonal demand [5]. Logistics Data Tracking - The report tracks significant growth in express delivery volumes, with a 15.83% year-on-year increase in the number of packages collected during early May 2025 [5]. - The logistics sector is benefiting from improved cross-border trade conditions, which are expected to enhance the performance of logistics companies [5].

北京市金杜律师事务所 关于华夏航空股份有限公司 2024 年年度股东大会 的法律意见书 致：华夏航空股份有限公司 北京市金杜律师事务所（以下简称本所）接受华夏航空股份有限公司（以下 简称公司）委托，根据《中华人民共和国证券法》（以下简称《证券法》）、《中华 人民共和国公司法》（以下简称《公司法》）、中国证券监督管理委员会《上市公司 股东会规则》（以下简称《股东会规则》）等中华人民共和国境内（以下简称中国 境内，为本法律意见书之目的，不包括中国香港特别行政区、中国澳门特别行政 区和中国台湾地区）现行有效的法律、行政法规、规章和规范性文件和现行有效 的《华夏航空股份有限公司章程》（以下简称《公司章程》）有关规定，指派律师 出席了公司于 2025 年 5 月 16 日召开的 2024 年年度股东大会（以下简称本次股 东大会），并就本次股东大会相关事项出具本法律意见书。 为出具本法律意见书，本所律师审查了公司提供的以下文件，包括但不限于： 1. 经公司 2022 年年度股东大会审议通过的《公司章程》； 2. 公司于 2025 年 4 月 26 日刊登于巨潮资讯网及深圳证券交易所网站的《华 夏航空股份有限公司第三届董事 ...