HK Stock Market Move | Aviation stocks rebounded again as tensions in the Middle East eased and international oil prices fell sharply. The imposition of fuel surcharges has provided relief for cost pressures.

Airline stocks rebounded again, as of press time, China Eastern Airlines (00670) rose 7.37% to 4.08 Hong Kong dollars; China Southern Airlines (01055) rose 7% to 4.43 Hong Kong dollars; Air China Limited (00753) rose 5.34% to 5.13 Hong Kong dollars; CATHAY PAC AIR (00293) rose 3.54% to 12 Hong Kong dollars. On the news front, US President Trump said in a recent interview that the US's war with Iran has "ended". Due to the easing of tensions in the Middle East, international oil prices fell significantly on April 14th. As of the day's closing, WTI crude oil futures were at 91.28 US dollars per barrel, a decrease of 7.87%; Brent crude oil futures were at 94.79 US dollars per barrel, a decrease of 4.6%. It is reported that fuel costs are the largest cost item for airlines. Changjiang released a research report stating that with the implementation of fuel surcharges, domestic market revenue has exceeded expectations. Considering the 73.1% year-on-year increase in domestic airline kerosene ex-factory prices, which led to a 26% increase in unit costs, the increase in unit seat revenue almost completely offset the cost pressure brought by the rise in oil prices, and the performance in the first week exceeded expectations. However, the price increase still has a negative impact on downstream consumers, as some routes have difficulty in raising prices, causing airlines to choose to suspend flights and drag down utilization rates.