Core Viewpoint - The airline industry is experiencing intense competition, leading to a decline in net profits despite slight revenue growth for companies like 吉祥航空 in Q1 2025 [1][4]. Financial Performance - 吉祥航空 reported a revenue of 57.22 billion yuan in Q1 2025, a year-on-year increase of 0.05%, while net profit decreased by 7.87% to 3.45 billion yuan [1]. - The company's net profit excluding non-recurring items fell by 29.50% to 2.63 billion yuan [1][3]. - In 2024, 吉祥航空 achieved a total revenue of 220.95 billion yuan, a 9.95% increase, and a net profit of 9.14 billion yuan, up 17.52% [3]. Industry Trends - The aviation industry is adopting a "price for volume" strategy due to heightened competition and pressure from high-speed rail, resulting in a decline in average ticket prices by over 10% in 2024 [2][4]. - The average revenue per passenger kilometer decreased by 12.5% year-on-year [2]. International Business Expansion - 吉祥航空 significantly increased its international flight operations, executing over 20,000 international flights in 2024, a 90% increase from 2023 [5]. - The international business revenue for 吉祥航空 reached 46.95 billion yuan in 2024, marking an 82.15% increase, while domestic revenue slightly declined by 1.00% [6]. - The company is focusing on expanding its international routes, including new destinations in Europe and Oceania, and enhancing its hub network [6][7]. Market Outlook - The airline industry is expected to see a potential improvement in ticket prices in Q2 2025, driven by seasonal travel demand [4]. - The overall international passenger volume for Chinese airlines increased by 34% year-on-year in Q1 2025, indicating a recovery trend in international travel [6].