Core Viewpoint - China Eastern Airlines reported strong financial performance for Q3 2025, with significant year-on-year growth in both revenue and net profit, indicating a robust recovery in operations and market demand [1][2]. Financial Performance - In Q3 2025, the company achieved operating revenue of 39.592 billion yuan, a year-on-year increase of 3.14% [2]. - The net profit attributable to shareholders reached 3.534 billion yuan, up 34.37% year-on-year, while the net profit after deducting non-recurring items was 3.164 billion yuan, reflecting a 30.21% increase [1][2]. - For the first three quarters of 2025, total revenue was 106.414 billion yuan, a 3.73% increase year-on-year, and the net profit attributable to shareholders was 2.103 billion yuan, marking a turnaround from a loss of 0.138 billion yuan in the same period last year [1][2]. Operational Data - The company has been actively enhancing its hub construction and implementing its "Three Flights" strategy, leading to improved operational metrics [1]. - In Q3 2025, the overall Available Seat Kilometers (ASK) increased by 6.02% year-on-year, while Revenue Passenger Kilometers (RPK) rose by 8.95%, resulting in a passenger load factor increase of 2.41 percentage points [1]. - Domestic operations showed growth with domestic ASK up 3.36% and RPK up 6.04% year-on-year, while international operations saw a recovery with international ASK at 113.63% of the 2019 level, reflecting a 12.85% increase year-on-year [1][2]. Fleet Size - As of Q3 2025, the total fleet size reached 820 aircraft, representing a 16.15% increase compared to the same period in 2019 and a 3.80% increase year-on-year [2]. Investment Analysis - The recovery of international routes is ahead of expectations, supported by increasing passenger flow in Shanghai and positive ticket pricing trends post-National Day holiday [3]. - Adjustments to net profit forecasts for 2025-2027 are made, with expected profits of 1.942 billion yuan, 9.043 billion yuan, and 14.922 billion yuan respectively, reflecting a more conservative outlook due to lower ticket prices than initially anticipated [3]. - The market is expected to see continued improvement in operations, with a projected price-to-earnings ratio of 12x for 2026 and 7x for 2027, which remains below historical valuation averages for major airlines [3].

Core Viewpoint - Hainan Airlines Holdings (600221) reported a turnaround in profitability for the first half of 2025, achieving a net profit of 0.57 billion yuan, with a revenue increase of 4.22% year-on-year to 33.083 billion yuan [1] Company Performance - In the first half of 2025, the company capitalized on the recovery of international routes, launching 12 new international routes and planning to increase international flights by 30% compared to 2019 by the end of the year [1] - The company achieved a revenue passenger kilometer (RPK) of 64,480.17 million kilometers, a year-on-year increase of 12.05%, with international RPK growing significantly by 68.68% [1] - The total available seat kilometers (ASK) reached 77,921.27 million kilometers, up 11.72% year-on-year, with international ASK increasing by 60.09% [1] Industry Overview - The civil aviation industry showed significant growth, with total transport turnover reaching 783.5 billion ton-kilometers, passenger transport volume at 370 million, and cargo mail transport volume at 4.784 million tons, representing year-on-year increases of 11.4%, 6%, and 14.6% respectively [1] - The domestic route network is being optimized, with the company's domestic flight schedule accounting for 9% of the industry total, and a 6% increase compared to the summer-autumn season of 2019 [2] - The company maintains a leading position at several key hub airports, with its flight schedule in Haikou ranking first in the industry [2] Future Outlook - Analysts suggest that the company is likely to enter a new profit cycle, supported by refined management, cost reductions, and favorable policies from the Hainan Free Trade Port [2] - The high passenger load factor, improving supply-demand dynamics, relatively low fuel costs, and pricing flexibility due to "anti-involution" policies are expected to enhance the company's profitability [2]