Hong Kong airline stocks surged in early trading on September 23, with China Eastern Airlines jumping nearly 3%, while China Southern Airlines and Air China both advanced over 2%. Cathay Pacific Airways and Meilan Airport also followed with gains.
On the news front, Brent crude fell below the $100 per barrel mark, settling at $99.25 a barrel, while WTI crude closed lower at $94.59 per barrel. Oil prices have now declined for six consecutive trading days, with cumulative losses exceeding 9%.
The drop is mainly attributed to reports that Saudi Arabia is pushing to restart a key oil pipeline, alongside progress in US-Iran negotiations, which have fueled expectations of a recovery in Middle East supply. BOC International previously noted that the sharp rise in aviation kerosene prices in the second quarter severely squeezed airline profits. If oil prices retreat in the second half of the year, the key factor weighing on airline stocks will ease, leaving the sector with significant room for a rebound.
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