Aviation stocks surged once more, with AIR CHINA (00753) rising 4.27% to HK$6.6, CHINA SOUTH AIR (01055) up 2.66% to HK$5.41, CHINA EAST AIR (00670) gaining 2.18% to HK$4.69, and BEIJING AIRPORT (00694) climbing 1.43% to HK$2.84 by the time of writing.

Industry data from the Civil Aviation Administration showed robust growth in China's air transport sector in October, with total traffic turnover reaching 14.6 billion ton-kilometers. Passenger and cargo volumes on international routes both grew by over 20% year-on-year. Domestic routes carried 60.845 million passengers, up 4.4%, while international routes transported 6.99 million passengers, a 20.4% increase.

Cathay Haitong Securities noted that despite reduced Japan route traffic prompting airline reallocations, the long-term logic of an aviation "super cycle" remains intact. The firm highlighted that airlines achieved counter-trend growth in Q3 2025 despite weaker summer travel demand, projecting further substantial loss reductions in Q4 and full-year profitability by 2025.

The report emphasized that China's aviation sector is entering a "super cycle," with market-based ticket pricing, steady demand growth, and optimized passenger demographics expected to drive profitability upward from 2026.