HK Stock Market Move | Airline stocks across the board are heating up. Air China Limited (00753) rose more than 3%. Institutions are optimistic about the airline's profit growth trend and potential.

Aviation stocks all rebounded, as of press time, Air China Limited (00753) rose 3.33% to 5.9 Hong Kong dollars; China Eastern Airlines (00670) rose 3.01% to 4.11 Hong Kong dollars; China Southern Airlines (01055) rose 2.78% to 4.81 Hong Kong dollars; CATHAY PAC AIR (00293) rose 1.26% to 11.21 Hong Kong dollars. On the news front, airlines and airports have released their third quarter reports recently. In the third quarter, Air China's net profit attributable to shareholders decreased by 11% year-on-year, China Eastern Airlines' net profit attributable to shareholders increased by 34% year-on-year, and China Southern Airlines' net profit attributable to shareholders increased by 20% year-on-year. Morgan Stanley previously stated that due to the poor performance of Air China in the third quarter and the recommendation of cash injection by the parent company, the stock price has declined slightly. However, the bank believes that these factors will not change its constructive view on the rising cycle of mainland airlines. The bank still believes that if business travel demand gradually improves, the higher asset utilization rate of mainland airlines will support their pricing power. Guotai Haitong pointed out that during important domestic conferences recently, passenger load factor and domestic ticket prices have remained the same year-on-year, with public and business travel continuing the active trend from September, estimating that domestic ticket prices including oil will increase by 3-4% year-on-year in October. According to pre-sale observations, the traditional seasonal impact is weaker than in previous years, and the industry is optimistic that public and business demand will continue to improve. A-share airlines achieved a counter-trend growth in performance in the third quarter of 2025, exceeding that of the third quarter of 2019 for the third consecutive year, showing a preliminary upward trend in profitability and potential. The "anti-internal competition" will guarantee a reduction in losses in the off-peak season in the fourth quarter and a turnaround for the whole year. China's aviation has a long-term logic, and considering the marketization of ticket prices, steady demand growth, and optimization of passenger source structure will drive the opening of the core profitability of airlines in 2026.