Investment Rating - The report maintains a positive outlook on the aviation industry, indicating a "Look Favorably" rating for the sector [2][4]. Core Insights - The summer travel season has seen a steady increase in both capacity and passenger volume, with domestic flights up by 2.2% and international flights up by 14.1% year-on-year [4]. - The average daily aircraft utilization in July was 8.8 hours, reflecting a 13% increase month-on-month and a 0.6% increase year-on-year [4]. - The report highlights that the demand for air travel remains strong, with airlines increasing capacity to meet this demand [4]. Summary by Sections Capacity and Passenger Volume - In July, the overall capacity (ASK) increased by 3.5% year-on-year, with domestic passenger volume rising by 2.0% and international passenger volume increasing by 13.1% [4]. - The report provides detailed statistics for major airlines, showing varied growth rates in capacity and passenger turnover [5]. Airline Performance - Six listed airlines showed different performance metrics in July, with China Eastern Airlines and Spring Airlines leading in capacity growth [4]. - The report notes that Spring Airlines continues to have the highest passenger load factor at 91.9% [4]. Domestic and International Markets - The domestic market shows a balanced growth in supply and demand, with significant increases in capacity and passenger volume for China Eastern Airlines and Southern Airlines [4]. - In the international market, airlines have significantly increased capacity, with China Eastern Airlines and Spring Airlines recovering to pre-pandemic levels [4]. Investment Recommendations - The report suggests a continued positive outlook for the aviation sector, with expectations of a gradual increase in passenger volume and load factors over the next 3-5 years [4]. - Recommended stocks include China National Aviation, Spring Airlines, and China Eastern Airlines, among others, based on their strong performance and growth potential [7].

Core Insights - The civil aviation passenger market in the Liaoning-Shenyang region has experienced significant growth during the summer travel season, with Southern Airlines reporting a 3% year-on-year increase in passenger numbers from July 1 to July 28, totaling 617,000 passengers [1] Capacity and Route Expansion - Southern Airlines has increased its capacity by adding new routes from Shenyang to Yantai and Hohhot, and has doubled the frequency of flights on the Shenyang to Wuhan route from 2 to 4 flights per day [1] - For high-demand routes such as Shenyang to Urumqi and Shenyang to Hangzhou, Southern Airlines has deployed Airbus A330 wide-body aircraft to ensure sufficient seating capacity for travelers [1] Passenger Trends - Traditional tourist destinations remain popular among Liaoning-Shenyang travelers, with the average seat occupancy rate for the Shenyang to Shanghai route reaching 90.2%, and other routes to Shenzhen, Guiyang, Urumqi, Changsha, and Chengdu exceeding 80% occupancy [1] - Data indicates a notable influx of travelers visiting Liaoning for summer vacations, with over 110,000 passengers arriving in Shenyang from cities such as Shanghai, Guangzhou, Xi'an, Changsha, and Shenzhen [1] International Routes Performance - International routes have also seen strong performance, with the Shenyang to Tokyo route achieving an average seat occupancy rate of 90.8%, and over 18,000 passengers carried on flights to Seoul since the beginning of the summer travel season [1]