HK Stock Market Move | Eastern Airlines (00670) rose by more than 4% again, and ticket prices in early April increased significantly. Institutions pointed out that the airline company has shown strong pricing power.

Eastern Airlines (00670) rose more than 4% again, as of the time of the report, it has risen by 3.92% to 4.24 Hong Kong dollars, with a turnover of 1.52 billion Hong Kong dollars. On the news front, the ceasefire agreement between the US and Iran is about to expire, and whether negotiations can continue has become the market focus. WanSi will go to Pakistan to promote a new round of US-Iran negotiations, and Iran's Supreme Leader Ayatollah Ali Khamenei has approved the dispatch of a negotiating delegation on the night of the 20th. Influenced by the news, on Tuesday, WTI crude oil futures fell below $86 per barrel, dropping by 1.68% intraday. Huatai released a research report stating that although fuel costs in April have risen significantly, domestic ticket prices for domestic flights in the second week of April increased by 22.7%, showing strong pricing power for airlines. Looking ahead, we believe that the negative sentiment of high oil prices for the sector may have been adequately reflected, and if oil prices stabilize and cost transmission continues, the sector is expected to see a catalyst. At the same time, the industry's supply growth rate in the medium to long term may remain low, and business sentiment is expected to continue to improve, so it is recommended to actively position in the aviation sector.