Core Viewpoint - The Hong Kong aviation stocks experienced a significant rise, with China Eastern Airlines increasing over 4%, China Southern Airlines nearly 3%, and Air China rising by 3.3%. A report from Zhongtai Securities forecasts a gradual recovery in domestic demand and a positive outlook for international markets, driven by visa-free policies and corporate expansion abroad, leading to a favorable supply-demand dynamic in the aviation sector by 2026 [1]. Group 1: Market Trends - The domestic aviation market is expected to see a slow growth in capacity deployment, with demand continuing to recover moderately, which will drive passenger load factors to new highs and ticket prices to trend upwards [1]. - The international market is anticipated to benefit from visa-free policies and favorable conditions for companies expanding overseas, leading to optimistic growth in demand that may exceed expectations [1]. Group 2: Industry Dynamics - By 2026, the aviation market is projected to experience a positive cycle of volume and price, with a shift in growth engines from the domestic market to the international market, thereby driving an increase in both volume and pricing [1]. - During the 2025 winter-spring season, several airlines have announced plans to increase capacity and open new international routes, indicating a strong competitive position for domestic airlines in the international market [1]. - From 2013 to 2024, the market share of domestic airlines in China's international passenger traffic rose from 42% to 66%, with flight market share reaching 70% by November 2025, showcasing the competitive strength of domestic carriers [1].
三大航空股拉升 东航一度涨超4% 国航涨3.3%