HK Stock Market Move | Airline stocks fall, geopolitical conflicts significantly raise fuel costs, and several airlines announce fare adjustments.

Aviation stocks fell overall. As of the time of writing, CATHAY PAC AIR (00293) fell by 4% to 12.48 Hong Kong dollars; China Southern Airlines (01055) fell by 3.09% to 4.71 Hong Kong dollars; Air China Limited (00753) fell by 2.3% to 5.51 Hong Kong dollars; China Eastern Airlines (00670) fell by 1.88% to 4.18 Hong Kong dollars. On the news front, according to the Southern Metropolis Daily, due to the impact of the situation in the Middle East, the global fuel market is fluctuating. Many airlines have begun to raise fuel surcharges, which may further increase travel costs. Industry insiders interviewed stated that the domestic fuel surcharge for domestic flights operated by Chinese airlines is adjusted monthly (every 5th of the month, next adjustment window is April 5th). Currently, it remains at 10 yuan for flights under 800 kilometers and 20 yuan for flights over 800 kilometers. It may also be affected by significant fluctuations in international oil prices and adjusted accordingly. In addition, to cope with the pressure from the soaring fuel costs, several Asian airlines such as Thai Airways, Hong Kong Airlines, and Indian Airlines have announced plans to increase ticket prices or fuel surcharges. Currently, more than 13 airlines worldwide have plans to raise fuel surcharges or ticket prices. Industry insiders believe that if the Middle East conflict continues and oil prices remain high, more airlines may follow suit in adjusting prices, and some low-profit margin budget airlines may even face the risk of bankruptcy.