Airline stocks gained ground during morning trading. As of press time, China East Air (00670) climbed 4.73% to HK$3.1; China South Air (01055) advanced 3.66% to HK$3.96; Air China (00753) rose 3.15% to HK$5.57; and Cathay Pac Air (00293) increased 0.65% to HK$10.79.

On the news front, the China Air Transport Association officially released the "China Air Transport Association Aviation Passenger Transport Self-Discipline Covenant." The covenant emphasizes strengthening industry self-regulation, maintaining market order, and reinforcing anti-monopoly and anti-unfair competition measures. It advocates that all companies strictly comply with relevant legal regulations including pricing laws and anti-unfair competition laws, eliminating malicious competitive practices aimed at squeezing out competitors, such as predatory pricing and false advertising.

The self-discipline provisions also stipulate that the Aviation Association will strengthen supervision and management of airline ticket prices, refund and change policies implemented by aviation sales network platforms and sales agents, strictly prohibiting illegal bundled sales and additional charges beyond listed prices.

Cathay Securities noted that summer travel passenger flow and load factors remain at high levels, with fuel-adjusted ticket prices continuing to stay flat, suggesting substantial summer profits are expected. The firm pointed out that the Civil Aviation Administration of China has recently deployed comprehensive measures to address "involutionary" competition, which is expected to reduce excessive low pricing in the short term; medium-term policy guidance may improve revenue management; and long-term fleet planning will continue with low growth rates. The firm suggests that short-term demand fluctuations do not change the long-term logic, recommends focusing on the recovery of business travel demand and anti-involution measures, and advises contrarian positioning.