China Post Securities·2025-06-18 07:57Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - The passenger load factor has reached a new high, and price expectations are improving. The civil aviation passenger volume in May 2025 showed good year-on-year performance, with major airlines experiencing an increase of over 5%, particularly Eastern Airlines with a growth of 10.8% and Spring Airlines with a 14.6% increase [4][13] - The domestic market remains stable while the international market is gradually expanding. The average daily flight volume in May 2025 was stable compared to April, with a year-on-year growth of 3.2%. Major airlines have shown slight growth in domestic routes, with Spring Airlines achieving double-digit growth [5][15] - Aircraft introduction remains low, and with the peak summer travel season approaching, the industry is expected to perform well in terms of volume and pricing. The fleet size of civil aviation is projected to grow by only 2.8% year-on-year, indicating a slow supply growth [6][25] Summary by Relevant Sections Industry Basic Situation - The closing point is 2012.96, with a 52-week high of 2398.85 and a low of 1625.59 [1] Recent Operational Data - In May 2025, major airlines reported a year-on-year increase in passenger transport volume, with Eastern Airlines at 10.8% and Spring Airlines at 14.6%. The overall passenger load factor for major airlines improved by approximately 3 percentage points [4][13] - Domestic flight volume remained stable, with a year-on-year increase of 3.2%. Eastern Airlines achieved a domestic load factor of 87.2%, up 4.4 percentage points year-on-year [5][15] Investment Recommendations - The report suggests a positive outlook for the civil aviation industry, with stable pricing and improved revenue management. Recommended stocks include Spring Airlines, Juneyao Airlines, and Huaxia Airlines, with a focus on the recovery of major airlines' performance [7][29]