HK Stock Market Move | Aviation stocks are on the rise again. The major operating data of the three major airlines in September is impressive. The industry's recovery is expected to continue.

Aviation stocks rose again, as of the time of drafting, China Eastern Airlines (00670) rose by 6.14% to HK$3.63; China Southern Airlines (01055) rose by 3.3% to HK$4.47; Air China Limited (00753) rose by 2.92% to HK$5.99. On the news front, on the evening of October 15th, several airlines released their operational data for September. The data showed that the three major airlines's passenger capacity, passenger turnover, and passenger load factors all showed a year-on-year increase. In September, China Southern Airlines' passenger capacity increased by 4.43% year-on-year; passenger turnover increased by 5.25% year-on-year. China Eastern Airlines Corporation's passenger capacity increased by 3.63% year-on-year in September; passenger turnover increased by 8.67% year-on-year; and the passenger load factor was 87.57%, an increase of 4.06 percentage points year-on-year. Air China Limited's passenger turnover in September increased by 5.6% year-on-year, with an average passenger load factor of 83.2%, an increase of 3.5 percentage points year-on-year. Huatai pointed out that after the summer peak season in September, the growth rate of airline capacity has slightly slowed down, with passenger load factors remaining at high levels. This may be due to a recovery in public and business travel demand, and ticket prices have started to show a year-on-year increase. According to data from Flight Master, domestic flight ticket prices including fuel for weeks 36 to 41 (9/1-10/12) increased by 3.0% year-on-year. Looking ahead, the new flight season is expected to see a tighter schedule compared to the previous year, signaling a bottoming out of the industry. Combined with anti-overwork measures and a low base, the bank believes that ticket prices are expected to continue to rise year-on-year in 4Q, while a decrease in oil prices is expected to reduce airline cost pressures, improving airline profitability and boosting sector attention.