Guotai Haitong: Pay attention to the bottoming opportunity in the aviation sector.

Guotai Haitong Securities research report states that considering high oil prices + high passenger load factor + low ticket prices + low stock prices, it is recommended to pay attention to the bottoming opportunity in aviation. The report says that aviation is one of the very few industries with long-term logic, and short-term demand fluctuations will not change the medium- to long-term steady growth trend. In the first quarter of 2026, industry supply-demand and profitability have already recovered well. Once oil prices fall back, it is expected to begin the unfolding of the long-term logic of a super cycle with a rising and sustainable profit center, and provide dual room for performance and valuation. At present, aviation stock prices are at a ten-year bottom, and geopolitical conflicts and high oil prices provide a rare opportunity for contrarian positioning. It is recommended to make strategic allocations and increase holdings in aviation.