Core Viewpoint - The airline industry is experiencing a low growth rate in domestic capacity while focusing on increasing international routes, leading to a tight supply situation and high passenger load factors [1][2][5]. Supply and Demand - Domestic airline capacity growth is below 3%, with a significant focus on international routes, resulting in a tight supply [1][2]. - Passenger load factors remain high, with improvements compared to both the previous year and 2019, particularly in domestic routes [1][3]. - Domestic turnover volume has shown steady growth, while international turnover volume has significantly increased, nearly returning to 2019 levels [1][5]. Pricing - During the National Day and Mid-Autumn Festival holidays, the industry saw a positive year-on-year change in ticket prices, with October prices continuing to show strength [2][3]. - The average domestic ticket price from the beginning of 2025 until mid-October was 861 yuan, down 7.9% year-on-year, while the average ticket price during the holiday period was 942 yuan, down 1.5% year-on-year [3]. - Recent weeks have shown a trend of increasing ticket prices, with a 4.9% year-on-year increase in the latest week [3]. Fuel and Exchange Rates - The average price of aviation fuel in October was 5572 yuan per ton, a slight decrease of 0.1% year-on-year [4]. - The Chinese yuan has appreciated against the US dollar since the beginning of 2025, which may impact operational costs for airlines [4]. Fleet Expansion - In September, Air China had the highest net increase in aircraft, adding 5 planes, while other airlines also showed varying levels of fleet growth [6][7]. - From January to September 2025, several airlines, including Spring Airlines, showed positive growth in domestic capacity, with Spring Airlines leading at a 6.4% increase [5][7]. Investment Focus - Investors are advised to pay attention to key airlines such as China Southern Airlines, China Eastern Airlines, Air China, Spring Airlines, and Juneyao Airlines for potential investment opportunities [8].