HSCSAIR@EC2612A

SUPERLAND GROUP

OCT (ASIA)

GREAT WORLD

JIAODA WITHUB

CREATIVE CHINA

SMART CITY DEV

DAISHOMICROLINE

RIMBACO

SHENYANG PUBLIC

XUNCE

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JP Morgan released a research report indicating that the Chinese aviation industry is experiencing the strongest supply-demand dynamics in a decade, but the industry's outlook is uncertain due to soaring oil prices and geopolitical risks. The report predicts that oil prices will impact the three major mainland airlines from 2026 to 2027, potentially leading to losses. In terms of ratings, Air China has been upgraded from "Underweight" to "Neutral," with a target price increase; both China Eastern Airlines and China Southern Airlines have had their ratings downgraded to "Underweight," with target price reductions

AASTOCKS

CHINA SOUTH AIR

AIR CHINA

CHINA EAST AIR

Air China

"Big Banks" JP Morgan: The sharp rise in oil prices offsets the upward cycle of China's aviation industry, "reduce holdings" in CEA and CSN

China's three largest state-owned airlines, Air China, China Eastern Airlines, and China Southern Airlines, have introduced a new policy allowing passengers to request a free refund if they find a lower fare for the same ticket within 24 hours of purchase. This initiative aims to address issues with online travel agency platforms, which account for over 70% of ticket sales. Despite regulatory prohibitions on excessive fees, problems persist. The airlines are also enhancing their direct sales channels and improving customer service on their platforms.

Yicai

China’s Top Airlines Offer Refunds If Ticket Prices Drop Within 24 Hours

China Southern Airlines says February passengers carried up 10.2% y/y

marketscreener

China Southern Airlines says February passengers carried up 10.2% y/y

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Oil prices plummeted, stimulating a rebound in airline stocks, with Cathay Pacific's share price rising nearly 6% at one point. Cathay stated that its fuel surcharge adjustments are primarily based on aviation fuel market prices rather than crude oil prices, and will be reviewed regularly on a monthly basis. Other airlines such as Air China, China Eastern Airlines, and China Southern Airlines also experienced varying degrees of increase

Stheadline

CATHAY PAC AIR

Oil prices plummet, stimulating a rebound in airline stocks. Cathay Pacific: Fuel surcharges are based on aviation fuel prices, not crude oil prices

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Chinese airlines have resumed some flights to the Middle East following safety assessments and the easing of regional tensions. China Southern Airlines restarted flights between Guangzhou and Riyadh, with additional routes planned. Other carriers like Air China and Hainan Airlines have also begun operations to Saudi Arabia and the UAE. However, flights to Qatar remain suspended. Passenger numbers are low, with flights carrying 30-40 people, while return flights are nearly fully booked. The recovery rate for flights to the UAE is 13.5%, and to Saudi Arabia is 43%.

Hainan Airlines Holding

Chinese Airlines Resume Some Flights to Middle East

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Affected by the external market, the Hong Kong stock market opened lower, with the Hang Seng Index briefly falling to 24,906 points, ultimately closing down 656 points or 2.6% at 25,101 points. Real estate, aviation, and local financial stocks generally declined, with China Southern Airlines and Cathay Pacific dropping 5.5% and 6% respectively, while HSBC and Hong Kong Exchanges and Clearing fell 3.6% and 2.6%. CNOOC rose against the trend by 7%. The total turnover of the market for the half day was HKD 219.339 billion

COSL

CNOOC

"Hong Kong Stocks" The Hang Seng Index fell 656 points in the half-day session, with weakness in real estate, aviation, and local financial stocks, while CNOOC rose by 7%

The tense situation in the Middle East has led to a significant rise in international oil prices, with New York crude oil up 28.3% to $116.59 per barrel, and Brent crude oil up 26.1%. As a result, global stock markets generally fell, with the Hong Kong stock market dropping nearly 600 points, and Cathay Pacific's stock price falling nearly 6%. Other airline stocks such as China Eastern Airlines, Air China, and China Southern Airlines also experienced significant declines

New York crude oil surged 28%, Hong Kong stocks fell nearly 600 points, Cathay Pacific dropped nearly 6%, and the three major mainland airlines once fell by more than 10%

Based on current operational capabilities and the regional situation, China Southern Airlines will resume flights between Guangzhou and Riyadh starting March 6, and between Shenzhen and Riyadh starting March 10. (Beijing Business Daily)

CoinLive

China Southern Airlines will resume flights between Guangzhou/Shenzhen and Riyadh.

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HSBC Research released a report regarding the unstable situation in the Middle East, with investment ratings and target prices for the shipping and aviation sectors H shares as follows: Cosco Ship Hold - reduce, target price 11 yuan; OOIL - reduce, target price 100 yuan; SITC - hold, target price 27 yuan; Air China - reduce, target price 4.3 yuan; Cathay Pacific - buy, target price 16 yuan; China Southern Airlines - reduce, target price 3.3 yuan

COSCO SHIP HOLD

SITC

OOIL

Cosco Ship Hold

The investment ratings and target prices for H-shares in the shipping and aviation sectors by the research team of "Major Banks" (Table)

The report from Huizheng indicates that Iran's closure of the Strait of Hormuz has led to a surge in tanker freight rates, impacting maritime oil and gas trade. Approximately 11% of global maritime trade passes through this strait, tightening tanker capacity and increasing long-distance transport volumes, which leaves room for further freight rate increases. The shipping industry may benefit from port congestion, driving new ship orders. The firm maintains a "reduce" rating on Air China and China Southern Airlines, expecting that rising oil prices will erode airline profits, especially in the absence of hedging

"Large Banks" Huayan: Tanker freight rates soar due to the closure of the Strait of Hormuz, maintaining "Reduce" rating for Air China and China Southern Airlines

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China Southern Airlines elects Cai Zhi Zhou as executive director of tenth board session

China Southern CNI Transportation Industry ETF

ChinaAMC CSI All Share Transportation ETF

China Southern Airlines elects Cai Zhi Zhou as executive director of tenth board session

HSCSAIR@EC2612A(26577.HK)

HSCSAIR@EC2612A Stock Performance Chart

"Big Banks" JP Morgan: The sharp rise in oil prices offsets the upward cycle of China's aviation industry, "reduce holdings" in CEA and CSN

China’s Top Airlines Offer Refunds If Ticket Prices Drop Within 24 Hours

China Southern Airlines says February passengers carried up 10.2% y/y

Oil prices plummet, stimulating a rebound in airline stocks. Cathay Pacific: Fuel surcharges are based on aviation fuel prices, not crude oil prices

Chinese Airlines Resume Some Flights to Middle East