Core Viewpoint - The three major airlines in China have seen a collective rise in stock prices, indicating positive market sentiment driven by anticipated growth in passenger traffic and favorable industry trends [1] Group 1: Airline Stock Performance - China Southern Airlines (01055) increased by 3.21%, reaching HKD 6.11 [1] - China Eastern Airlines (00670) rose by 2.38%, trading at HKD 5.59 [1] - Air China (00753) saw a 2.1% increase, with shares priced at HKD 7.3 [1] Group 2: Passenger Traffic Projections - The Ministry of Transport forecasts that from December 31, 2025, to January 2, 2026, the total civil aviation passenger volume will reach 5.976 million, representing a year-on-year growth of 13% [1] - On January 3, the national civil aviation sector is expected to transport 2.08 million passengers, marking a year-on-year increase of 21.8% [1] Group 3: Industry Outlook - Huayuan Securities suggests that Q3 performance may signal the start of a long-term market trend [1] - Current demand growth is stable and sustainable, with both existing and new supply tightening [1] - Improvements in cost due to oil and exchange rates, along with a consensus on "anti-involution" within the industry, are forming clear trends [1] - It is recommended to position investments in advance [1]

Core Insights - The International Air Transport Association (IATA) reported a significant increase in global air passenger demand and capacity for April 2025, with passenger demand growing by 8.0% year-on-year and capacity increasing by 6.5% [1] - Global air cargo demand also showed strong growth, with a year-on-year increase of 5.8% in April, supported by seasonal demand for fashion and consumer goods [2] Passenger Transport - In April, the global passenger load factor reached 83.6%, an increase of 1.1 percentage points year-on-year [1] - Domestic air passenger demand grew by 3.3% year-on-year, with capacity increasing by 3.1%, resulting in a slight increase in load factor to 82.7% [1] - International air passenger demand surged by 10.8% year-on-year, with notable growth in the Asia-Pacific region (14.4%) and Europe (9.4%), while North America saw a 5.4% increase despite a 26% drop in first and business class travel demand [1] Cargo Transport - The air cargo sector experienced robust demand growth of 5.8% in April, continuing the strong performance from March [2] - Factors contributing to this growth included seasonal demand, preemptive stockpiling ahead of changes in U.S. tariff policies, and lower aviation fuel prices [2] - Despite positive April data, the impact of U.S. trade policy adjustments poses challenges for global trade, necessitating flexibility from airlines in the coming months [2]