Air China's stock plummeted 5.03% during intraday trading on Monday, reflecting broader pressures on aviation stocks in the Hong Kong market.
The sharp decline comes amid reports of rapidly rising aviation fuel prices in the Asia-Pacific region, which have surged 16.6% from the previous week and 129.8% compared to the previous month's average. This increase significantly outpaces the global benchmark Brent crude oil, creating substantial cost pressures for airlines.
Chinese carriers like Air China face particular vulnerability as they have no hedging in place against fuel price fluctuations, with fuel accounting for approximately one-third of their operating expenses. Analysts note that sustained high oil prices could push major mainland airlines toward losses or break-even performance in 2026.
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