HK Stock Market Move | Aviation stocks fell across the board, with China Eastern Airlines (00670) dropping more than 5%. In recent days, there have been fluctuations in oil prices and exchange rates.

Aviation stocks across the board are falling. As of the time of writing, China Eastern Airlines (00670) fell by 5.17% to 5.5 Hong Kong dollars; Air China Limited (00753) dropped by 4.95% to 7.11 Hong Kong dollars; China Southern Airlines (01055) fell by 3.11% to 5.92 Hong Kong dollars; CATHAY PAC AIR (00293) dropped by 1.51% to 12.42 Hong Kong dollars. On the news side, there have been recent fluctuations in oil prices and exchange rates. According to Hua Chuang Securities research report, based on the semi-annual reports of various airlines in 2025, a 10% change in oil prices corresponds to an annualized cost impact of approximately 43-51 billion for the three major airlines, and a 1% exchange rate fluctuation has an impact of 1.3-2.6 billion on the three major airlines. Haitong recently pointed out that it is expected that the demand for the Spring Festival travel rush in 2026 will remain strong; civil aviation will strictly control the increase in flights and flight frequencies on trunk routes, and the Spring Festival flight additions will be relatively limited; the effect of the Spring Festival holiday rush may be weaker than in previous years, and the concentration of passenger flows before and after the festival may benefit airline revenue management.