HK Stock Market Move | Aviation stocks continued their recent strong performance. Civil aviation is expected to benefit from the downward trend in international oil prices. Institutions are optimistic about the stable recovery of domestic aviation fuel prices.

The aviation sector continued its recent strong performance. As of the time of writing, China Southern Airlines (01055) rose by 4.92% to 3.84 Hong Kong dollars, Air China Limited (00753) rose by 3.16% to 5.23 Hong Kong dollars, Capital Airlines (00694) rose by 2.57% to 2.79 Hong Kong dollars, and Eastern Airlines (00670) rose by 1.9% to 2.68 Hong Kong dollars. On the news front, OPEC+ announced that it will increase production as scheduled in April 2025. Guotai Junan pointed out that the global oil market is expected to enter a period of increasing production after a period of reduced production, leading to a downward trend in oil prices. According to data from the Ministry of Transportation, during the 40 days of the Spring Festival travel rush, the cumulative passenger traffic of civil aviation reached 90.2 million, a year-on-year increase of 7.4%. Statistics from Flight Manager show that the average economy class airfare (including tax) during the Spring Festival travel rush in 2025 reached 874.9 yuan, a year-on-year decrease of 11.3%. Guosen pointed out in a research report that looking ahead to the price performance of the aviation sector in 2025, as the authorities mentioned at the National Civil Aviation Work Conference to "regulate the pricing behavior of key periods and special circumstances of air transport, strengthen price regulation and supervision, and maintain order in the air transport market," and with the supply-demand situation in 2025 expected to improve definitively, we believe that the domestic jet fuel prices in 2025 are expected to stabilize and rise. The bottom of civil aviation operations has passed, and the supply-demand gap in civil aviation will continue to narrow. The profitability of airlines will continue to improve. The downside risks of the fundamentals of the aviation sector are controllable, and there is limited downside space for stock prices.