HK Stock Market Move | Continued growth trend in aviation stocks. Institutions predict that airlines will continue to significantly reduce losses in the fourth quarter, and unit seat revenue may significantly recover.

The aviation sector continues to grow, as of the time of writing, Beijing Capital International Airport (00694) rose by 4.49%, to 2.79 Hong Kong dollars; China Eastern Airlines (00670) rose by 3.43%, to 5.12 Hong Kong dollars; Air China Limited (00753) rose by 2.82%, to 6.92 Hong Kong dollars; China Southern Airlines (01055) rose by 2.15%, to 5.69 Hong Kong dollars. Guotai Haitong released a research report stating that since September, the aviation sector has entered the traditional off-peak season, and public and commercial demand is the core force affecting ticket prices. In September and October, due to the concentrated release of suppressed public and commercial demand during the summer peak season, ticket prices increased compared to the same period last year. In November, due to fewer exhibitions and a slight decrease in public and commercial passenger flows, the year-on-year increase in ticket prices narrowed slightly. In December, with increased visits and group activities at the end of the year, the proportion of public and commercial passenger flow is expected to increase, with a slight decrease in domestic ticket prices in the early part of the month compared to the same period last year, while domestic ticket prices including fuel continue to rise year-on-year. Considering the improvement in revenue management in the same period of 2024, the year-on-year increase in ticket prices for the whole month may continue to narrow. The bank expects a significant reduction in losses in the fourth quarter of 2025 and a turnaround for the whole year. Cinda stated that since the beginning of 2025, industry passenger load factors have remained high, with strong travel demand on domestic and international routes. The off-peak season is not slow, with high load factors and ticket prices returning to a positive trend. The bank believes that the unit revenue of airlines may see a significant recovery. From January to November 2025, except for Air China and Spring Airlines, the domestic flight capacity of other airlines has slightly increased year-on-year; the passenger load factors remain high, with significant year-on-year increases in passenger load factors for the three major airlines; except for Spring Airlines, the turnover on domestic routes of all airlines has increased year-on-year, with Spring Airlines and China Eastern seeing growth rates of 8.4% and 5.9%, respectively, while other airlines' growth rates are within 5%.