HK Stock Market Move | Airlines stocks rose across the board as the US and Iran reached an agreement causing oil prices to fall sharply. The improvement in supply and demand is expected to help airlines improve their operations during the peak season.

Aviation stocks are strong across the board. As of the time of writing, Air China Limited (00753) rose 9.91% to HK$4.88; China Eastern Airlines (00670) rose 8.77% to HK$3.72; China Southern Airlines (01055) rose 8.86% to HK$3.93; and CATHAY PAC AIR (00293) rose 4.55% to HK$12.4. On the news front, on June 15, international oil prices plummeted, with WTI crude oil falling by over 5% to $80.508 per barrel, and Brent crude oil futures falling by over 4% to $83.506 per barrel. U.S. President Trump announced on June 14 that a peace agreement with Iran has been officially reached and the Strait of Hormuz has been reopened. The Iranian Supreme National Security Council issued a statement in the early hours of the same day, officially confirming the Iran-U.S. ceasefire memorandum. Pakistani Prime Minister Shahbaz wrote on social media on the 15th that the U.S. and Iran have reached a peace agreement, with the official signing ceremony to take place on the 19th in Switzerland. Haitong of Cathay Pacific pointed out that considering the improvement in domestic supply and demand after the college entrance examination, it is expected that the operating pressure of domestic airline routes will improve in June compared to May. International routes are expected to continue to benefit from the sharp rise in ticket prices between China and Europe and maintain profitability, providing surpassing industry oil price hedging capabilities for airlines like Air China. The industry's profitability in the first quarter of 2026 improved significantly year-on-year, reflecting a good recovery in supply and demand; the seasonal pressure of oil prices in the second quarter highlights pricing pressures and reduced flights, leading to operational challenges; the demand for summer travel for families in the third quarter is rigid, and the improvement in supply and demand along with the fall in oil prices will ensure a significant improvement in peak season operations.