Aviation stocks rebounded in early trading, with China Eastern Airlines Corp Ltd (00670) rising 4.82% to HK$2.39 as of press time; China Southern Airlines Co Ltd (01055) gaining 4.06% to HK$2.82; Beijing Capital International Airport Co Ltd (00694) climbing 2.99% to HK$1.38; and Air China Ltd (00753) advancing 2.89% to HK$3.56.
On the news front, Air China Ltd (00753) announced that its passenger capacity investment in September rose 3.5% year-on-year; passenger turnover increased 6.3% year-on-year; and the average load factor was 85.4%, up 2.3 percentage points year-on-year. On the cargo side, cargo capacity investment rose 6.3% year-on-year; cargo and mail turnover grew 10.5% year-on-year; and the cargo load factor was 42.5%, up 1.6 percentage points year-on-year.
BOCI pointed out that as travel demand continues to recover, passenger traffic maintains its repair momentum, and airlines' revenue side keeps growing, but profit recovery remains constrained by multiple factors. On one hand, rising fuel costs put pressure on airlines' operating costs; on the other hand, airfare elasticity is relatively limited, and the transmission of passenger traffic growth to the profit side remains insufficient, with airlines overall showing a coexistence of revenue improvement and profitability pressure.
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