On May 29, Air China rose 3.35% in regular trading, trading at HKD 4.9/share, with trading volume of HKD 26.76 million.
On the news front, international crude oil prices have dropped significantly due to easing US-Iran tensions, providing direct cost relief to airlines as fuel accounts for 30%-40% of total operating expenses. Simultaneously, the upcoming Dragon Boat Festival holiday combined with the anticipated summer travel peak season has driven strong booking demand, with domestic ticket reservations exceeding 680,000. Air China reported April passenger turnover up 5.8% year-over-year and an average load factor of 85.5%, indicating robust demand-side momentum.
Institutions suggest that a sustained downtrend in oil prices could further unlock earnings elasticity across the aviation sector, while the approaching summer peak season is expected to support higher ticket prices and load factors. Within the Airlines sector, China Eastern Airlines rose 4.93%, China Southern Airlines rose 3.45%, and Cathay Pacific rose 3.21%, with the broader aviation sector strengthening in tandem.
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