Air China's stock price plummeted 5.21% during intraday trading on Friday, reflecting significant selling pressure in the airline sector.
The sharp decline follows reports that domestic airlines are set to implement a substantial increase in fuel surcharges, effective from the next day. Concurrently, jet fuel prices have surged dramatically, with a reported 75% month-on-month increase for April, exacerbating operational cost pressures for carriers.
Analysts from Morgan Stanley highlighted that current increases in air ticket prices are insufficient to offset the rapid rise in fuel costs, warning of squeezed short-term profit margins. The bank further noted that the anticipated upcycle for the aviation industry is now expected to be delayed, with a recovery not forecast until 2027, contributing to the negative investor sentiment.
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