CITIC Securities: Continue to be optimistic about the performance release of airlines in the next two years.

The report from CITIC Securities pointed out that the release of civil aviation fleet capacity is constrained by factors such as low introduction of new aircraft, engine maintenance, and aviation materials and spare parts. The utilization rate of fleet capacity during peak seasons is approaching the limit, with continued recovery in public and business demands recently. It is expected that in 2026, policy measures will further stimulate private travel, emphasizing the importance of airline profitability turning points. In the third quarter, the international passenger kilometers revenue of major airlines is comparable to domestic ones, marking a change in the weaker international revenue levels since 2015. By 2025, major airlines are expected to achieve positive profits for the first time after the pandemic, becoming the starting point of profit release cycle, and continuing to be optimistic about airline performance for the next two years.