The Zhitong Finance App learned that aviation stocks were under collective pressure. As of press release, China Eastern Airlines (00670) fell 3.14% to HK$3.08; China Southern Airlines (01055) fell 2.61% to HK$3.36; and Air China (00753) fell 2.16% to HK$4.07.
According to the news, due to the escalation of the situation between the US and Iran, Brent crude oil futures hit $100 per barrel on Thursday, the first time since late May. As of press release, the cumulative increase in Brent crude oil has exceeded 27% this month. US President Trump threatened to step up the crackdown and impose “major military penalties” on Iran and the Houthis, saying he is considering launching a “large-scale attack.” It is worth noting that currently, the Strait of Hormuz and the Strait of Mander, the two major energy centers in the Middle East, are facing the threat of a substantial blockade at the same time.
According to reports, fuel is one of the most important costs for airlines. According to data from several airline companies' 2025 annual reports, fuel costs generally account for about 30% of operating costs. J.P. Morgan Chase released a research report saying that the three major Chinese airlines have released performance forecasts for the first half of this year. After recording net profit in the first quarter of this year, dragged down by high oil prices and weak basic ticket prices, the bank expects the average net loss of the three major airlines to reach 4.3 billion yuan in the second quarter of this year, the highest single-quarter loss since 2023.