Citi believes that there is room for growth in China's civil aviation within 30 days because May 1st Golden Week is approaching.
The Zhitong Finance App learned that Citibank released a research report stating that it gave Air China (00753) a “buy” rating and that there is room for growth within 30 days because May 1st Golden Week is approaching, and the target price is HK$7.1. Citi believes that Air China will benefit from its leading yield position and that domestic passenger load rates will increase. The company has the greatest flexibility in outbound travel, particularly market share advantages on China-Europe routes. Excellent pre-sale data, especially outbound travel, should help the stock price respond positively.
The bank said that the upcoming May Day holiday shows a strong pre-sale record: 1) According to reports, during the May Day Labor Day holiday, domestic ticket pre-sales increased 21% year-on-year, 41% higher than in 2019. The average price of an economy class is 1,040 yuan, 3% lower than 2023, but 40% higher than 2019, and 80% higher than this year's Qingming holiday; 2) Outbound travel: Ctrip Group-S (09961) said that on the basis of the new visa-free policy, the number of visa applicants increased 30% year-on-year. Outbound group tours, especially the bright line between China and Europe, are heating up.