HK Stock Market Move | Aviation stocks significantly differentiated, rising fuel prices bring cost pressure. JP Morgan said Cathay Pacific benefits from shift from sea shipping to air transport.

Aviation stocks have shown significant differentiation, as of the time of publication, CATHAY PAC AIR (00293) rose by 3.62% to 13.16 Hong Kong dollars; Air China Limited (00753) fell by 3.12% to 5.9 Hong Kong dollars; China Eastern Airlines (00670) fell by 4.55% to 4.41 Hong Kong dollars; China Southern Airlines (01055) fell by 5.08% to 4.86 Hong Kong dollars. On the news front, escalating Iran conflict has led to high international oil prices, with a rise of around 30% expected within 2026, Brent crude oil is currently priced at over $84 per barrel, bringing cost pressures to airlines. Most airlines have fuel hedging plans, but still find it difficult to resist the overall impact on the industry. However, Guotai Haitong stated that Chinese airlines may have a better ability to handle oil price risks than market expectations. JP Morgan released a research report stating that with the closure of the Strait of Hormuz by Iran, the reshaping of Asian supply chains, and the overflow effect of sea and air transport is continuing to expand. As shippers turn to air transport to avoid shipping bottlenecks, airlines like Cathay Pacific and Singapore Airlines, with cautious fuel hedging strategies, mature route network management, and unique overflight rights in Russian airspace for Hong Kong and mainland Chinese airlines, are best positioned to capture the new demand.