HK Stock Market Move | Airline stocks collectively rise, with passenger flow for civil aviation during the National Day holiday increasing despite the high base. The potential for airline profit to rise is promising.

Aviation stocks collectively rose, as of the time of writing, China Eastern Airlines (00670) rose by 5.43% to 3.3 Hong Kong dollars; Air China Limited (00753) rose by 4.24% to 5.65 Hong Kong dollars; China Southern Airlines (01055) rose by 3.24% to 4.14 Hong Kong dollars; CATHAY PAC AIR (00293) rose by 1.23% to 10.66 Hong Kong dollars. On the news front, during the eight-day National Day and Mid-Autumn Festival holiday, the total number of cross-regional travelers in the society reached 2.433 billion person-times, with a daily average year-on-year increase of +6.3%, a +30.8% compared to the same period in 2019. During the National Day holiday last year (seven days), the base of civil aviation travel was high, with a daily average passenger flow increased by +11.1% year-on-year; during the eight-day holiday period this year, the daily average passenger flow of civil aviation still achieved a +3.3% year-on-year growth. Data from Flight Manager shows that the average ticket price for domestic economy class during the holiday is 849 yuan, an increase of +0.3% year-on-year, basically the same, compared to a slight decrease of 1.4% in the same period in 2019, the holiday ticket price performance is relatively stable. Guosen released a research report stating that the fourth quarter is entering the off-peak travel season, and the demand for public and business travel was relatively weak during the same period last year, with a potential recovery this year. The slowing growth of capacity supply in the future enhances certainty, if travel demand can maintain stable growth and drive continuous recovery of airlines' seat revenue, it is expected to bring high elasticity to airline performance; coupled with a downward trend in oil prices and stable exchange rates, the upward space for airline profitability can be expected.