On the news, since June, the number of go around flights in the global aviation industry has increased. On June 3, the International Air Transport Association reported that since April 21, the number of flights has rebounded by 30%.
However, according to media reports, Trumps government plans to ban Chinese passenger flights from the middle of June to the United States. Later, the U.
Zhao Lijian, a spokesman for Chinas foreign ministry, said Thursday that China regrets this. At present, CAAC is negotiating with the U.S. Department of transportation. Previously, CAAC and the U.S. Department of transportation have kept close communication on the flight arrangement between the two countries, which has already made some progress. Now China has also announced policy adjustment, hoping that the U.S. side will not create obstacles to solve the problem.
On the same day, the Civil Aviation Administration issued a notice on adjusting international passenger flights, releasing a list of 37 port cities with the ability to receive international passenger flights, with all class II airports listed. From June 8, 2020, all foreign airlines not listed in the phase 5 flight plan can select a port city with reception capacity within the business license of the company, and operate one international passenger route flight every week. At the same time, the Civil Aviation Administration also announced the flight reward circuit breaker mechanism for cases. Under the new deal, more foreign airlines are expected to get permission to fly to China.
After the release of the new deal, a number of U.S. airlines rose on the same day, while United Airlines rose more than 10%. Last night, Americans plan to return flights to 55% in July further ignited airline stocks. Americans share price rose more than 40% and spirits rose more than 20%.
Mingxing, an analyst with Anxin securities, and others commented that the new policy, on the whole, will conditionally resume some international flights and promote overseas airlines to jointly prevent and control the epidemic, which is of positive significance to support domestic resumption of production and tourism consumption. International routes are expected to start the normalization recovery process, and it is suggested to pay close attention to the turning point of international passenger flow.
Mingxing and others believed that the period of the most serious impact of the epidemic on the airport had passed, and the passenger flow began to recover in an orderly manner (the domestic line recovered faster). They suggested focusing on Spring Airlines, three major airlines (Air China, China Southern Airlines, China Eastern Airlines) and Shanghai Airport.
According to Societe Generale Securities, Spring Airlines is expected to take the lead in recovering profits at the end of the second quarter, benefiting from the low-cost mode. Under the background of limited supply and low oil price, CITIC Securities expects that the three major airlines may rise to a high net interest rate range of 6% - 8% in 2021.