HK Stock Market Move | Airline stocks all rise as geopolitical tensions ease, oil prices fall for a fifth straight day, and travel demand heats up ahead of the dual holidays.

Airline stocks all rise. As of press time, MEILAN AIRPORT (00357) is up 3.33% at HK$4.495; Air China Limited (00753) is up 2.12% at HK$3.86; CATHAY PAC AIR (00293) is up 2.05% at HK$14.42; China Southern Airlines (01055) is up 1.85% at HK$3.025. On the news front, boosted by the restart of pipelines coupled with Iran's softening stance, international oil prices have fallen for a fifth consecutive day. As of press time, Brent crude has dropped below US$95. In addition, with the Mid-Autumn Festival and National Day holidays approaching, travel demand in the domestic tourism market is heating up ahead of schedule, with tourism-related online search volumes and flight booking volumes continuing to rise, and civil aviation transportation is about to usher in a new round of concentrated travel peaks. Guotai Haitong believes that airline share prices are already at a ten-year low, that geopolitical factors and oil prices do not change the long-term logic, and that this provides a rare opportunity for bottom-fishing. Once oil prices fall back, the long-term logic of a rising central profitability level will begin to play out. Caitong also pointed out that the medium- to long-term logic of improving industry supply and demand remains unchanged, and it is bullish on the sector's upward prosperity; if oil prices decline subsequently, airlines are expected to unleash profit elasticity.