HK Stock Market Move | The three major airlines continue to rise, with strong expectations for the improvement of air traffic volume and prices. Institutions are optimistic about the industry's bright prospects.

The three major airlines continue to rise. As of the time of publication, China Southern Airlines (01055) rose by 3.21% to 6.1 Hong Kong dollars; China Eastern Airlines (00670) rose by 2.63% to 5.85 Hong Kong dollars; and Air China Limited (00753) rose by 2.23% to 7.33 Hong Kong dollars. Guotai Haitong believes that as universities gradually go on holiday and business travel gradually resumes, the recent increase in airline traffic and prices has begun to rebound. At the same time, the Spring Festival travel rush has started recently, with a significant increase in ticket sales. The bank expects strong demand for the Spring Festival travel in 2026. The supply of Chinese aviation has entered a period of low growth, and ticket prices have become market-oriented. The steady growth of aviation demand and improvements in airline revenue management will drive ticket prices and profits upwards sustainably, providing a double space for performance and valuation. Zhongtai research report points out that in the short term, the favorable oil and exchange rates are expected to continue, combined with the subsequent "anti-exhaustion" and the catalyzing effect of the Spring Festival holiday, the strong expectation of improvement in airline traffic and prices is promising, and it sees opportunities for aviation investment driven by positive fundamental changes. In the long term, the positive cycle effect of civil aviation traffic and prices is gradually becoming apparent, with high passenger load factors and industry initiatives against exhaustion expected to drive industry prosperity higher than expected. It is optimistic about aviation investment opportunities.