The Zhitong Finance App learned that aviation stocks fell collectively. As of press release, China Southern Airlines shares (01055) fell 3.96% to HK$3.035; China Eastern Airlines shares (00670) fell 3.82% to HK$2.645; Air China (00753) fell 3.43% to HK$3.94; and Cathay Pacific (00293) fell 1.73% to HK$15.32.

According to the news, starting November 5, fuel surcharges for domestic passenger transportation will be adjusted. Each adult passenger is charged 80 yuan for fuel for flights below 800 km (inclusive), and fuel charges are 140 yuan per adult passenger for flights over 800 km, up 30 yuan and 50 yuan respectively from the previous ones.

Changjiang Securities pointed out that the increase in surcharges will help airlines pass on fuel costs, but it will also directly increase the total travel price for passengers. As of November 7, the domestic seven-day moving average fuel ticket price rose 12.1% year on year, naked ticket price after daily deduction decreased 0.5% year on year, and domestic passenger traffic fell 3.5% year on year. Bare ticket prices have remained basically the same year on year, and the relationship between supply and demand in the domestic market has improved month-on-month, but currently the main driver for improving revenue for airlines is still surcharges, and domestic demand's ability to withstand the increase in total ticket prices is limited.

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