Movement Alert｜Air China Falls 3.48% in Regular Trading, Middle East Tensions Push Oil Prices Higher Pressuring Airlines Sector

On June 11, Air China (00753.HK) fell 3.48% in regular trading, trading at HK$4.14/share, with trading volume of HK$14.55 million.

On the news front, escalating Middle East tensions following Israeli strikes on Iranian military targets have significantly elevated shipping risks in the Persian Gulf, driving international crude oil prices sharply higher. Brent crude surged to US$96.04/barrel while WTI rose to US$95.77/barrel. The International Air Transport Association (IATA) slashed its full-year global airline industry net profit forecast from approximately US$41 billion to US$23 billion, nearly halving from last year's US$45 billion. IATA projects global airline fuel expenditure will surge to approximately US$350 billion, up nearly 39% year-over-year, squeezing net profit margins to just 2.0%. IATA further warned that some smaller airlines with weaker balance sheets face bankruptcy or acquisition risk.

Industry data indicates that for every 1% rise in oil prices, the three major Chinese carriers see profits decline 3-4%, with current oil prices above US$95 pushing them near breakeven levels. Across the Airlines sector, Cathay Pacific fell 2.01%, China Eastern Airlines fell 3.41%, and China Southern Airlines fell 2.86%.

(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.)