Zhi Tong Cai Jing·2026-01-12 09:07Group 1 - The core viewpoint of the article is that the Chinese aviation industry has undergone a transformation over the past year, benefiting from policy adjustments related to base locations, air rights, and flight schedules [1] - The domestic capacity deployment in the industry has been orderly, leading to a gradual year-on-year increase in ticket prices amid consumption downgrade, excess capacity, and high-speed rail competition [1] - Due to the reform of subsidy policies, airlines have significantly expanded international destinations and flight frequencies, leveraging their wide-body fleet advantages [1] Group 2 - The firm expects the favorable policies for the Chinese aviation industry to continue, predicting a 1% to 3% year-on-year increase in domestic ticket prices by 2026 [1] - Domestic passenger volume is anticipated to grow by 3% to 4% year-on-year, while international passenger volume is expected to maintain double-digit growth [1] - The firm holds a constructive view on the Chinese aviation industry, assigning a "Buy" rating to Spring Airlines (601021) with a target price of 61.3 RMB, and a "Neutral" rating to China Southern Airlines (600029) with target prices of 6.5 RMB for A-shares and 4.1 HKD for H-shares [1]