HK Stock Market Move | Aviation stocks continue to be under pressure, with airline profits significantly impacted by the rising oil prices. Multiple countries in the Middle East have announced the closure of their airspace.

Aviation stocks continue to be under pressure. Air China Limited (00753) fell by 4.04% to HK$6.17; China Eastern Airlines (00670) fell by 3.91% to HK$4.91; China Southern Airlines (01055) fell by 1.67% to HK$5.30. On the news front, due to the tension in Iran, oil prices have risen by about 25% since the beginning of the year. Goldman Sachs stated in a research report that among the various sub-sectors of transportation they cover, airline companies are most significantly impacted by the rise in oil prices. Specifically, China Southern Airlines is the most sensitive, with a 1% increase in oil prices leading to a 4.3% decrease in expected profits for 2026; China Eastern Airlines and Air China follow closely with sensitivities of -4.1% and -3.2% respectively. Furthermore, after several countries in the Middle East announced the closure of their airspace, the three major civil aviation giants in the region - Emirates, Qatar Airways, and Etihad Airways - successively announced the suspension of flights, leading to a complete halt of flights to and from their core hubs in Dubai, Doha, and Abu Dhabi. Multiple Chinese airlines such as Air China, China Eastern Airlines, and China Southern Airlines have also announced special ticket handling measures for their Middle East routes.