On July 27, AIR CHINA rose 4.91% in regular trading, trading at HKD 4.28/share, with turnover of HKD 66.38 million. The Hong Kong-listed airline sector rallied broadly, with China Southern Air up 4.46%, China Eastern Air up 3.91%, and Cathay Pacific Air up 2.56%.
On the news front, Saudi Arabia sharply cut its August official selling prices for key crude grades to Asian customers, marking the largest reduction in at least 26 years, significantly strengthening expectations of international oil price retreat. This development directly alleviates the fuel cost pressure that has weighed heavily on airline profitability throughout the first half. CICC noted that aviation kerosene prices are expected to decline materially on a quarter-over-quarter basis in the second half, providing strong cost-side improvement certainty. Goldman Sachs raised its Q3 and Q4 airline industry net profit forecasts by 24% and 32%, respectively.
Previously, AIR CHINA had guided for a first-half net loss of RMB 2.1 billion to 2.6 billion, with elevated jet fuel prices cited as the primary drag on profitability. The potential easing of oil prices represents a key catalyst for earnings recovery heading into the peak summer travel season.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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