HK Stock Movement | Aviation Stocks Decline Broadly as Geopolitical Conflicts Significantly Push Up Fuel Costs, Multiple Airlines Announce Price Adjustments

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CITIC Finance APP learned that airline stocks are generally falling. As of the latest report, Cathay Pacific (00293) dropped 4%, trading at HKD 12.48; China Southern Airlines (01055) fell 3.09%, at HKD 4.71; Air China (00753) declined 2.3%, at HKD 5.51; China Eastern Airlines (00670) decreased 1.88%, at HKD 4.18.

According to Southern Metropolis Daily, due to the Middle East situation, the global fuel market is volatile, and many airlines are beginning to raise fuel surcharges, which could further increase travel costs. Industry insiders said that domestic airlines in China adjust fuel surcharges on domestic routes monthly (on the 5th of each month, with the next adjustment window on April 5th). Currently, the surcharge is 10 yuan for routes under 800 km and 20 yuan for routes over 800 km. Future adjustments may also be influenced by significant fluctuations in international oil prices.

In addition, to cope with the surge in fuel costs, several Asian airlines such as Thai Airways, Hong Kong Airlines, and Air India have announced fare increases or higher fuel surcharges. Currently, more than 13 airlines worldwide plan to raise fuel surcharges or ticket prices. Industry experts believe that if the Middle East conflict continues and oil prices remain high, more airlines may follow suit. Some low-margin budget airlines could even face the risk of bankruptcy.

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