UPDATE 1-China airline stocks up after return to black in Q3

SHANGHAI/HONG KONG, Oct 28 (Reuters) - Chinese airline stocks rose on Wednesday after the country's top three carriers said they returned to the black in the third quarter, thanks to fuel hedging gains and a recovery in domestic air travel.

Air China's (0753.HK) Hong Kong traded shares rose more than 3 percent to HK$4.45, bucking a weak market, and its Shanghai shares (601111.SS) also gained 1.7 percent.

The country's flag carrier reported a net profit of 885.3 million yuan ($81 million) last quarter, reversing a restated loss of 1.97 billion yuan a year ago. [ID:nHKG307498]

"All three airlines did pretty good in the third quarter because of the healthy recovery of the air travel market," said Zhang Qi, an analyst with Orient Securities.

Domestic air traffic in China has resumed its normal growth pattern this year, as Beijing's aggressive economic stimulus lifted consumer confidence, after a slowing economy hit demand last year.

"Even volume on the international routes has improved steadily since the beginning of the year," Zhang said.

China Southern (600029.SS) (1055.HK), which posted a 284 million yuan profit in the third quarter against a loss of 830 million yuan a year ago, was up about 2 percent in both Hong Kong and Shanghai. [ID:nHKF080482]

China Eastern (600115.SS) (0670.HK) edged up 0.9 percent in Hong Kong and was up 1.3 percent in Shanghai. It posted a slight profit of 23.16 million yuan but it was a marked improvement from a 2.3 billion yuan loss a year ago. [ID:nHKF080484]

The rises bucked a broader market trend that saw Hong Kong's Hang Seng Index .HSI shed 1.11 percent, and the benchmark in Shanghai .SSEC down 0.25 percent. (Reporting by Fang Yan and Alison Leung; Editing by Doug Young and Jonathan Hopfner)