Huatai Securities: Falling oil prices catalyze aviation rebound.

Huatai Securities research report stated that in the context of high oil prices, airlines further reduced low-yield routes, and civil aviation supply in May was under pressure compared to the same period last year, but the passenger load factor and ticket prices of retained routes remained relatively strong. The ASK/RPK of the three major airlines, Spring Airlines, and Lucky Air decreased by 3.6% and 2.1% respectively, while the passenger load factor increased by 1.3 percentage points to 85.9%. According to flight management data, the domestic line oil-inclusive ticket prices increased by 17.5% from the 18th week to the 22nd week. Airlines maintained strong pricing power. Looking ahead, the recent decline in oil prices is expected to ease airlines' cost pressure and flight reductions, catalyzing a rebound in the sector. The trend of tightening supply in the medium to long term remains unchanged. If the central point of oil prices continues to fall, it may lead to a reversal in the sector.