The Zhitong Finance App learned that aviation stocks picked up in early trading. As of press release, China Eastern Airlines shares (00670) rose 4.82% to HK$2.39; China Southern Airlines shares (01055) rose 4.06% to HK$2.82; Beijing Capital Airport shares (00694) rose 2.99% to HK$1.38; and Air China (00753) rose 2.89% to HK$3.56.

According to the news, Air China announced that in September, passenger capacity investment increased by 3.5% year-on-year; passenger turnover increased 6.3% year-on-year; and the average passenger occupancy rate was 85.4%, up 2.3 percentage points from year to year. In terms of freight, freight capacity investment increased by 6.3% year on year; cargo and mail turnover increased by 10.5% year on year; freight traffic rate was 42.5%, up 1.6 percentage points year on year.

Bank of China International pointed out that as travel demand continues to recover, passenger flow continues to recover, and the airline revenue side continues to grow, yet profit recovery is still constrained by multiple factors. On the one hand, rising fuel costs are putting pressure on airline operating costs; on the other hand, airline ticket price flexibility is relatively limited, and passenger flow growth is still not sufficiently transmitted to the profit side. Overall, airlines are characterized by improved revenue and pressure on profits.

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