Aviation stocks gained in early trading. As of press time, CHINA EAST AIR (00670) rose 3.26% to HK$4.44; AIR CHINA (00753) climbed 2.91% to HK$6.36; CHINA SOUTH AIR (01055) increased 2.63% to HK$5.08; BEIJING AIRPORT (00694) edged up 1.06% to HK$2.85.

Recently, major domestic listed airlines have successively disclosed their Q3 2025 reports. Supported by peak summer travel and foreign exchange gains, AIR CHINA, CHINA EAST AIR, and CHINA SOUTH AIR all reported year-on-year revenue growth and profitability for the first three quarters. In Q3, the combined adjusted net profit of the three major airlines reached RMB10.27 billion, up from RMB9.19 billion in the same period last year.

A research report noted that private travel demand remained strong during the October holiday period, followed by active business travel post-holiday. It is estimated that monthly passenger traffic increased by 5% year-on-year. Although domestic jet fuel prices remained flat compared to last year, average domestic ticket prices including fuel surcharges rose 3-4% year-on-year, with the increase widening further from September. The report suggests China's aviation industry is likely to achieve profitability in October, outperforming typical seasonal trends.

The report also projected that China's aviation sector may enter a "super cycle," driven by market-based ticket pricing, steady demand growth, and optimized passenger demographics, which could elevate airline profit margins in 2026.