Guotai Haitong Sees 'Overweight' Potential in Airlines and Oil Shipping

Analysts at Guotai Haitong have maintained an 'overweight' rating on airlines and oil shipping, citing renewed hopes for negotiations as geopolitical tensions ease. The research firm believes that supply-demand dynamics will improve with policies supporting consumption recovery.

The long-term supercycle thesis remains intact for the air transport sector, driven by fare liberalization and constrained capacity growth. Policies supporting consumption recovery will further boost supply-demand dynamics. Investors are advised to seize opportunities at the current trough.

For tanker shipping, if Strait passages resume, supply-demand balance could return to elevated levels, potentially lifting sanctions on Iranian oil exports and driving a strong upcycle. While geopolitical tensions have cooled, investors should watch for contrarian entry points due to ongoing tensions weighing on tanker demand.