Core Viewpoint - The report from CITIC Securities indicates a recovery in civil aviation public business demand since mid-September, with high passenger load factors translating into ticket price increases, and anticipates a 6.4% year-on-year growth in daily passenger volume during the National Day holiday in October [1][2] Group 1: Demand and Pricing - Public business demand has shown continuous improvement since mid-September, with high load factors reflecting demand recovery impacting ticket prices positively [2] - Data from the flight management platform indicates that the average pre-sale ticket price for domestic flights during the National Day holiday has increased by 7.9% year-on-year [2] - The expectation is that the improvement in public business demand will support sustained positive growth in overall ticket prices in Q4 2025 [2] Group 2: Industry Regulation and Supply Constraints - The civil aviation industry is undergoing a "de-involution" initiative aimed at addressing excessive competition, with potential regulatory measures including price floor controls, flight schedule management, and stricter oversight of online travel agencies (OTAs) [3][4] - The industry is expected to maintain strict supply controls, with a focus on optimizing the structure of flight schedules based on profitability and competition levels [4] - The introduction of new aircraft is limited, with a net increase of only 60 aircraft among the three major airlines this year, reflecting a low growth trend in effective supply [6] Group 3: Future Outlook - The upcoming National Day and Mid-Autumn Festival holidays are anticipated to see strong demand for air travel, with potential for better-than-expected performance in terms of volume and pricing [8] - The ongoing "de-involution" efforts are expected to provide support for industry pricing, enhancing the earnings elasticity of airlines [5][8] - The combination of low aircraft introduction rates and ongoing engine maintenance is likely to result in continued low growth in effective supply, with limited impact from new orders on overall supply dynamics [6][8]