HK Stock Market Move | Airline stocks rise again, institutions predict that the industry will significantly reduce losses in the fourth quarter, and will achieve a full year profit loss reversal in 25 years.

Aviation stocks rose again. As of the time of writing, Air China Limited (00753) rose by 4.27% to 6.6 Hong Kong dollars; China Southern Airlines (01055) rose by 2.66% to 5.41 Hong Kong dollars; China Eastern Airlines (00670) rose by 2.18% to 4.69 Hong Kong dollars; Capital Airport (00694) rose by 1.43% to 2.84 Hong Kong dollars. On the news front, according to the data from the Civil Aviation Administration, in October, China's civil aviation transport scale showed a good growth momentum, with a total transport turnover of 14.6 billion ton-kilometers. The passenger transport volume and freight transport volume on international routes both increased by over 20% year-on-year. In terms of passenger transport, the domestic routes completed a passenger transport volume of 60.845 million person-times in October, a year-on-year increase of 4.4%; the international routes completed a passenger transport volume of 6.99 million person-times, a year-on-year increase of 20.4%. Guotai Haitong released a research report stating that the reduction in passenger traffic on the Japan route has led airlines to switch, but the logic of the aviation super cycle remains unchanged. The bank pointed out that the overall performance of airlines in the third quarter of 2025 achieved counter-cyclical growth under pressure from the weakening demand from summer public and business travels. It is expected that the industry will continue to significantly reduce losses in the fourth quarter of 2025 and will achieve a full-year turnaround in 2025. China's aviation sector will enter a "super cycle", considering market-oriented ticket prices, robust demand growth, and optimization of customer source structure will drive the opening of the profitability center of airlines in 2026.