CHINA SOUTH AIR's stock surged 5.31% during intraday trading on Friday, reflecting a significant upward movement in the aviation sector.

The rally is primarily attributed to geopolitical developments that have led to a retreat in international oil prices. Reports indicate that U.S. and Iranian negotiators have reached an agreement, easing tensions and reducing fuel costs, which typically constitute 25% to 40 of airline operational expenses. This directly alleviates a major cost burden for carriers like CHINA SOUTH AIR.

Furthermore, the demand outlook for the aviation industry remains strong. Despite previous headwinds from high oil prices, consumer air travel expenditure has maintained a clear year-on-year growth trend. With the summer travel season approaching, analysts anticipate improved supply and demand dynamics, enhancing the industry's ability to manage costs and potentially exceed market expectations.