Goldman Sachs has released a research report projecting higher international travel demand for Chinese airlines next year, driven by visa-free policies for Chinese travelers in more countries and potential ongoing seat supply shortages. The report suggests further upside for airfares, supported by upward revisions in international passenger traffic forecasts. Factors such as improved Chinese export activity and expanded visa-free access are expected to boost airline stocks, with a projected return on equity of 22% by 2027.

While risks related to Japan-bound travel remain a concern, Goldman Sachs maintains a positive stance on aviation stocks. The firm particularly recommends AIR CHINA (00753), citing strong performance, and assigns a "Buy" rating to both its H-shares and A-shares (601111).

In other transportation sectors, Goldman Sachs remains optimistic about crude oil tanker companies, anticipating further spot freight rate increases in a sustained upturn through 2026. COSCO SHIP ENGY (01138) is seen as a beneficiary due to its high exposure to crude tankers and China’s import business, also receiving a "Buy" rating.

Conversely, the report turns bearish on container shipping firms, noting higher-than-expected new vessel orders this year, which have pushed the orderbook-to-fleet ratio to 33%. This could lead to a deeper and more prolonged downturn. As a result, COSCO SHIP HOLD (01919) was downgraded to "Sell."