Jinwu Financial News | Haitong International said that in April, the total supply and demand of the five listed airlines (Air China, China Eastern Airlines, China Southern Airlines, Spring Airlines, and Juneyao Airlines) each fell 2.7%/2.4% month-on-month (Air China data is the same as the air China Airlines data, same below), about 105.2%/103.4% in the same period in '19, and passenger occupancy increased 0.2 percentage points month-on-month to 81.6%, down 1.5 percentage points from the same period in '19. Supply and demand in the industry declined somewhat in April.
According to the bank, in the short term, it is believed that strong demand for private travel, such as May Day, Dragon Boat Festival, and peak summer travel seasons, will drive a clear rebound in demand in the travel chain, but business travel during the off-season is lackluster or slow down the overall recovery progress. Looking at the slow growth rate of China's airline capacity introduction in the long run, there is a high degree of certainty; travel confidence continues to recover, and they are optimistic that the long-term investment logic of the aviation industry will not change in the future (that is, the supply and demand pattern will improve, and ticket price marketization), and wait for the economy to recover. The bank expects the airline's profit center to rise in '24, focusing on investment opportunities in the aviation sector.