The Zhitong Finance App learned that aviation stocks continued their recent rebound. As of press release, China Southern Airlines (01055) rose 6.37% to HK$3.09; Eastern Airlines (00670) rose 6.34% to HK$2.685; Air China (00753) rose 5.12% to HK$4; and Cathay Pacific (00293) rose 1.98% to HK$15.44.
According to previous CCTV reports, in an interview with the media on the 8th, Trump said that as long as negotiations between the US and Iran progress, it is “extremely unlikely” that the US will resume large-scale military action against Iran, but he also stressed that the US military stationed in the Middle East is “ready” and that the possibility of using force again has not been ruled out. According to another report, Iran has made concessions on the Strait of Hormuz issue and abandoned some of its original demands.
Cathay Pacific Haitong Securities pointed out that with the loosening of international oil prices, aviation will be the industry that will benefit the most. Under high oil prices, the airline's Q2 class reduction and price increase guaranteed oil price transmission by more than 60%. The Q3 increase meant less than 30% of oil price transmission. This suggests that the airline's business strategy began to improve over the summer season in September. In October, controlled price insurance promoted a year-on-year correction of fuel-containing ticket prices. According to flight managers, the three major airlines cut flights by about 6% year-on-year in October. In November, the factory price of domestic aviation fuel rose 75% year on year. The airline strategy continued after the season change. Recently, domestic raw ticket prices have risen year on year. It is estimated that the price of fuel containing fuel has increased by more than 10% year on year, and the transmission of airline oil prices may have improved markedly compared to Q3.