HK Stock Market Move | All three major Chinese airlines retreat across the board; repeated fluctuations in the Middle East situation end oil prices' five-day losing streak; institutions say airline profitability remains under pressure.

All three major Chinese airlines retreated across the board. As of press time, Air China Limited (00753) fell 3.5% to HK$3.72; China Southern Airlines (01055) dropped 3.15% to HK$2.925; China Eastern Airlines (00670) declined 2.48% to HK$2.56. On the news front, renewed fluctuations in the Middle East situation ended international oil prices' five-day losing streak, with the Brent November contract rising 3.9% to $103.08 per barrel. Iran's president said at the UN General Assembly that Iran will not surrender in a war against the United States and will not accept being forced to make concessions through power, sanctions, or military threats. Iran's secretary of the Supreme National Security Council said the Strait of Hormuz will not reopen until Iran's conditions are met. According to the historical financial reports of major airlines, aviation fuel costs typically account for 30% to 40% of operating costs. A September 23 research report by EB SECURITIES pointed out that overall, after the end of the summer travel season, civil aviation flight volume rebounded slightly month-on-month, international cargo flights increased significantly compared with the previous week, and industry supply remained stable; however, ticket prices have generally remained at low levels since September, and the resilience in passenger flow has not yet been fully translated into price elasticity, leaving airline profitability still under pressure. It is suggested to watch for bottom-fishing opportunities.