HK Stock Market Move | Capital Airport (00694) rose more than 7%, leading the aviation stocks. August air passenger traffic reached a record high, and the supply and demand relationship is expected to continue to improve.

Aviation stocks collectively rose, as of the time of writing, Capital Airport (00694) rose by 7.59% to HKD 2.55; MEILAN AIRPORT (00357) rose by 6.72% to HKD 6.83; China Southern Airlines (01055) rose by 2.95% to HKD 2.44; Air China Limited (00753) rose by 2.97% to HKD 3.12; Eastern Airlines (00670) rose by 1.73% to HKD 1.76. On the news front, the Civil Aviation Administration disclosed the industry operating data for August 2024. In August 2024, the total number of passengers transported by civil aviation was 72.93 million, a year-on-year increase of 14.0%. Among them, domestic routes had 59.98 million passengers, a year-on-year increase of 5.8%, and international routes had 6.47 million passengers, a year-on-year increase of 77.6%. It is worth mentioning that in August, both the number of passengers transported by civil aviation and the passenger load factor reached their highest values for a single month in history. In addition, various airlines disclosed their operating data for August 2024. From the overall data, all airlines achieved a certain growth in capacity and business volume year-on-year, with a significant increase in the passenger load factor for the three major airlines. China Post Securities pointed out that in terms of structure, the year-on-year recovery of international routes in 2024 was evident. Airlines shifted their capacity from domestic routes to international routes, with capacity on domestic routes remaining relatively stable year-on-year, and the overall passenger load factor significantly increasing. The capacity on international routes saw a substantial increase, and the overall passenger load factor also showed some improvement. The firm believes that although the recovery of public and business demand may still take time, with the gradual recovery of the economy, the supply and demand relationship in civil aviation is expected to continuously improve, lifting the industry's profitability level.