HK Stock Market Move | Airline stocks rise against the market trend. Oil prices and exchange rates help airlines reduce costs. The passenger load factor of the three major airlines remains strong in the off-season.

Aviation stocks rose against the market, as of the time of publication, China Eastern Airlines (00670) rose 1.92% to 4.78 Hong Kong dollars; China Southern Airlines (01055) rose 1.16% to 5.25 Hong Kong dollars; Air China Limited (00753) rose 0.94% to 6.43 Hong Kong dollars. On the news front, on December 16, the onshore and offshore RMB against the US dollar exchange rate strengthened again. The offshore RMB against the US dollar exchange rate once again broke through 7.04, rising to 7.03725 during the day, hitting a new high since October 4, 2024. In addition, the off-peak season occupancy rates of the three major airlines remain strong. In November, China Eastern Airlines' passenger load factor was 87.37%, a year-on-year increase of 3.04 percentage points; China Southern Airlines' November passenger load factor was 86.29%, a year-on-year increase of 1.36 percentage points; Air China Limited's average passenger load factor in November was 83.3%, a year-on-year increase of 4 percentage points. Huatai research report pointed out that looking ahead, it may be difficult for off-peak season high-frequency data to form a catalyst, short-term market volatility is low, and more attention is paid to the performance of the 26th Spring Festival travel season; in the medium to long term, the industry's supply growth rate may remain low, with improvements in profitability expected to be transmitted through ticket price increases, while lower oil prices and a potential decrease in the US dollar exchange rate against the RMB are expected to reduce cost pressures, collectively improving airline profitability. The top pick is the state-owned three major airlines (AH) with high win rate and high odds, followed by other private airlines.