CITIC Securities: A comprehensive rectification of the "internal competition" in the aviation transportation industry, optimistic about the seat revenue and profit elasticity brought by the improvement of supply and demand.

Sinotrust Securities released a research report stating that they are optimistic about the profit elasticity brought by the improvement of supply and demand. The certainty of supply contraction is relatively strong, and there is limited room for improvement in overall peak season transportation capacity. The Civil Aviation Administration has specially deployed comprehensive rectification of "inward competition" in the civil aviation field, guiding the industry to return to rational competition and orderly development, and the situation is expected to continue to improve. The continuous growth of summer peak season demand and high passenger load factors may improve supply and demand, potentially driving a recovery in seat revenue. They are optimistic about the profit elasticity brought by the recovery in seat revenue for airlines.