HK Stock Market Move | Airline stocks rise against the market trend, US-Iran negotiations lead to a sharp drop in international oil prices. Institutions indicate that demand for air travel continues to grow.

Aviation stocks rose against the market, as of the time of writing, China Eastern Airlines (00670) rose by 4.66% to HK $3.82; China Southern Airlines (01055) rose by 3.91% to HK $3.99; Air China Limited (00753) rose by 3.16% to HK $4.9; CATHAY PAC AIR (00293) rose by 1.19% to HK $12.75. In news, consultations between the US and Iran continue, with US officials stating that both sides are optimistic about resolving the dispute. On Monday, international oil prices fell from their highs, directly easing the biggest operating cost burden for airlines. Fuel typically accounts for 25%-40% of airlines' costs. Cathay Haitong pointed out that international oil prices have been transmitted to the domestic market since April 2026, leading to a significant increase in domestic fuel surcharges. Additionally, marketization of ticket prices ensures ample room for naked ticket price increases, with supply and demand determining the actual transmission capacity. Airline demand is based on consumer aviation spending (quantity * price), and despite a reduction in passenger flow due to high oil prices in April and May, airline demand continues to exhibit a clear year-on-year growth trend. With the end of the mid-term exams in June and the start of summer travel, it is expected that supply and demand will enhance the transmission capacity of oil prices, surpassing market expectations.