The first private airline IPO project in Zhejiang has arrived: Changlong Airlines starts counseling

On November 17, Zhejiang Changlong Airlines Co., Ltd. (hereinafter referred to as "Changlong Airlines") launched its A-share IPO guidance. Changlong Airlines was established in 2011, with Zhejiang Changlong Group Co., Ltd. as the controlling shareholder, and the actual controller is Liu Qihong. This is a rare private airline A-share listing project in many years. Currently, there are 4 private airlines listed on the A-share market: Spring Airlines (601021.SH), Juneyao Airlines (603885.SH), China Express Airlines (002928.SZ), and HNA Holding (600221.SH), which went public in 2015, 2015, 2018, and 1999, respectively. From a regional perspective, Changlong Airlines is currently the only local private airline in Zhejiang, and it has received strong support from the local government. In 2021, the Zhejiang Provincial Industrial Fund provided targeted support for the construction of Changlong Airlines' innovative intelligent maintenance guarantee main base industrial project through direct investment. Currently, Changlong Airlines has opened nearly 600 domestic and international passenger and cargo routes, covering the whole country and reaching over 170 cities in countries and regions along the "Belt and Road," including Japan, South Korea, Hong Kong, Macau, Southeast Asia, and Central Asia. However, the current situation for airlines is not easy, as the performance growth of the 4 private airlines on the A-share market is weak. In the first three quarters of 2025, the revenues of Spring Airlines, Juneyao Airlines, China Express Airlines, and HNA Holding grew by 4.98%, -0.06%, 11.25%, and 3.3% year-on-year, respectively. This is a result of the overall pressure on the industry. In the third quarter of 2025, the number of domestic flights and passengers only increased by 2% and 2.84% year-on-year, respectively. However, the decline in oil prices has somewhat increased the profit margins for many airlines. The average price of aviation kerosene in the first three quarters of 2025 was $85.85 per barrel, a decrease of more than 10% compared to the same period last year. Air China once calculated in 2024 that, assuming other variables remain unchanged, a 5% decrease in average jet fuel prices would lead to a reduction in its fuel costs by 2.686 billion yuan. Looking ahead to the fourth quarter, Zhongtai Securities believes that the current dual benefits of oil prices and exchange rates will lead to a "not-so-slow" trend in the fourth quarter, and it is expected that the airline industry will significantly reduce losses in the fourth quarter of 2025, with the industry's profit elasticity expected to be released in 2026. This may provide more growth space for Changlong Airlines' performance. As the guidance institution for Changlong Airlines, Huatai United plans to complete the guidance by April next year, at which point it is expected to take the first step towards filing. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk