HK Stock Market Move | Aviation stocks are generally under pressure, with both China Eastern Airlines (00670) and China Southern Airlines (01055) falling more than 3%.

Aviation stocks are under pressure. As of the time of writing, China Eastern Airlines (00670) fell 3.36% to 3.74 Hong Kong dollars; China Southern Airlines (01055) fell by 3.08% to 4.09 Hong Kong dollars; Air China Limited (00753) fell by 2.6% to 4.87 Hong Kong dollars. On the news front, the geopolitical situation in the Middle East is changing rapidly, and international oil prices remain high. As of the time of writing, Brent crude oil is close to 99 US dollars. In addition, since mid-March, many domestic airlines have raised international flight fuel surcharges, with increases generally exceeding 50%. Spring Airlines has announced that, starting from April 5, 2026, the fuel surcharge for domestic flights will be adjusted for tickets sold after that date. Sealand believes that with tightening supply and increasing travel demand in 2026, the improvement in supply and demand, high passenger load factors, will support the bottoming out and recovery of low-ticket prices, bringing high elasticity growth to airline performance. Currently, the aviation industry is facing significant cost pressures due to the rapid increase in oil prices in the short term, but there are certain hedging measures to ease this pressure. Moreover, the trend of supply and demand improvement is still strong, and the profit recovery elasticity brought by the increase in passenger revenue is promising.