HK Stock Market Move | Airline stocks rebound in morning trading; passenger traffic continues its recovery trend; institutions say profit recovery remains constrained by multiple factors.

Airline stocks rebound in morning trading. As of press time, CHINA EAST AIR (00670) rose 4.82% to HK$2.39; CHINA SOUTH AIR (01055) rose 4.06% to HK$2.82; BEIJING AIRPORT (00694) rose 2.99% to HK$1.38; Air China Limited (00753) rose 2.89% to HK$3.56. On the news front, Air China Limited announced that its passenger capacity investment in September rose 3.5% year-on-year; passenger turnover rose 6.3% year-on-year; the average passenger load factor was 85.4%, up 2.3 percentage points year-on-year. On the cargo side, cargo capacity investment rose 6.3% year-on-year; cargo and mail turnover rose 10.5% year-on-year; the cargo load factor was 42.5%, up 1.6 percentage points year-on-year. BOCI pointed out that as travel demand continues to recover, passenger traffic continues its recovery trend, and airlines' revenue side maintains growth, but profit recovery remains constrained by multiple factors. On the one hand, rising fuel costs put pressure on airlines' operating costs; on the other hand, airfare elasticity is relatively limited, and the transmission of passenger traffic growth to the profit side remains insufficient, with airlines overall showing a coexistence of revenue improvement and profit pressure.