Hong Kong stock concept tracking | In the second quarter, the "May Day" and Dragon Boat Festival holidays are expected to boost the recovery of airline sector stocks (with concept stocks attached).

On April 8, the Civil Aviation Administration held the enlarged meeting of the April Safety Commission. In the first quarter, the industry completed a total of 3.771 million hours of transport flights and 1.406 million flights, an increase of 5.2% and 3.4% respectively year-on-year. The total transportation turnover was 428.0 billion ton kilometers, with passenger transport volume of 200 million person-times, increasing by 10.9% and 6.5% respectively year-on-year. At the same time, the industry's safety operation situation remained stable, and various work achieved a good start in the first quarter. The second quarter will see the successive arrival of the May Day and Dragon Boat Festival holidays. Zhongtai pointed out that from the seasonal data, in the 2026 summer and autumn flight season, domestic airlines' domestic planned schedule volume decreased year-on-year, showing the intention of the Civil Aviation Administration to control volume and maintain prices; domestic airlines' international planned schedule volume increased year-on-year. With the background of favorable policies for visa-free travel and the trend of enterprises going global, international routes are expected to show a trend of simultaneous increase in volume and price. Huatai's research report stated that short-term oil price pressures have eased, and the cost transmission effects of airlines are good, with valuation attractiveness already evident. Looking ahead, attention should be paid to the sustained pricing ability of airlines. In the medium to long term, the industry is still in a phase of supply and demand improvement cycle. In the first quarter, three major airlines plus Spring Airlines, Juneyao Airlines, and Hainan Airlines' net reduction of 5 aircraft, a decrease of 0.15% compared to the end of 2025. The supply growth rate may remain low; factors such as the recovery of public and business travel, rapid growth in inbound and outbound tourism, silver economy, family travel, spring/autumn holidays, etc., may drive good performance on the demand side, together with the "anti-internal competition," continuing to be optimistic about the bottom-up trend. It is recommended to actively invest in the aviation sector. Related aviation sector Hong Kong stocks: China Eastern Airlines (00670), China Southern Airlines (01055), Air China Limited (00753) rose, CATHAY PAC AIR (00293), TRAVELSKY TECH (00696).