Guotai Haitong: Over half of the Q2 aviation off-season oil price has been transmitted, Q3 summer passenger flow reaches new highs.

Guotai Haitong released a research report stating that high oil prices in the offseason of 2026 Q2 have put pressure on the industry's operations. It is estimated that more than half of the oil price transmission ratio, with a significant increase in ticket prices on the China-Europe route, has helped the oil price transmission to be better than expected. It is expected that the demand for parent-child summer travel will remain resilient, with record high passenger flow and potential operational improvements. There is a huge growth space for aviation demand, and consumer boosting and visa-free policies in multiple countries will ensure continued stable growth in demand. The improvement in supply and demand will drive profitability growth. It is recommended to seize the opportunity of long-term logic with low stock prices, and choose high-quality airline networks.