Core Viewpoint - The Hong Kong aviation stocks have seen significant gains, with China Eastern Airlines rising nearly 7%, China Southern Airlines up over 3%, and Air China increasing by 5% due to improved demand in the civil aviation sector in September [1][2]. Industry Summary - According to Huatai Securities, the demand for civil aviation improved in September, leading to a year-on-year recovery in ticket prices. The average oil-inclusive price for domestic economy class tickets increased by 1.5% during weeks 36-39 (September 1-28), compared to a decline of 6.5% during the summer travel period [1]. - During the Mid-Autumn Festival and National Day holiday, the passenger volume in civil aviation increased by 3.3% year-on-year, although this was a slowdown compared to the 11.8% increase during the May Day holiday. The average oil-inclusive ticket price also saw a modest year-on-year increase of 0.3%, indicating stable performance [1]. - Looking ahead, the industry is expected to continue its recovery in earnings levels in the fourth quarter, supported by low supply growth, reduced internal competition, and a low base effect. The long-term outlook for the industry remains positive [1]. - Airport companies are experiencing revenue growth in non-aeronautical operations that is generally lower than the growth in passenger traffic, highlighting the need to enhance the monetization of traffic. Attention should be paid to the capital expenditure cycle of airports and its impact on profitability in the medium term [1].
三大航空股拉升 东航涨近7%、国航涨5% 券商指行业景气有望持续改善