Stock Track | Air China Plummets 5% Intraday Amid Geopolitical Tensions, High Oil Prices and Fuel Surcharge Hikes

Stock Track03-26

Air China's stock experienced a significant decline of 5% during Thursday's intraday trading session, reflecting broader pressure on aviation stocks in the Hong Kong market.

The downturn is attributed to volatile geopolitical tensions in the Middle East and sustained high international oil prices, with Brent crude trading near $99 per barrel. Additionally, multiple domestic airlines have significantly increased fuel surcharges on international routes since mid-March, with hikes generally exceeding 50%, putting further pressure on airline operating costs.

Spring Airlines has also issued a notice indicating it will raise domestic route fuel surcharges for tickets sold from early April 2026. While analysts maintain a positive long-term outlook for the aviation sector's supply-demand dynamics and profit recovery potential, the immediate cost pressures from rising oil prices and geopolitical uncertainties have weighed on investor sentiment toward airline stocks.

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