CICC: The sharp drop in oil prices since the beginning of the year is expected to significantly improve the cost of airlines.

Research reports from Zhongjin Company indicate that it is expected that the average annual growth rate of China's civil aviation passenger supply from 2025 to 2028 will be approximately 3.1%, with the average annual growth rate of industry passenger aircraft at only 2.8%. This lays a solid and lasting foundation for the start of the aviation cycle. Since 2025, oil prices have fallen sharply, and airline costs are expected to improve significantly. If the cycle goes up, airlines will have great profit elasticity.