The Zhitong Finance App learned that aviation stocks were under pressure across the board. As of press release, China Southern Airlines (01055) fell 3.6% to HK$2.675; Air China (00753) fell 3.42% to HK$3.385; and Eastern Airlines (00670) fell 2.99% to HK$2.27.

According to the news, international oil prices have regained their upward trend. Brent crude rose 1.47% to above 110 US dollars during the Asian session today due to the attack on Saudi Arabia's Ame Sheba oil field and the withdrawal of some US personnel from the Saudi embassy. Brent has already risen by more than 80% during the year. Higher oil prices will directly impact the cost side of airlines. Aviation fuel costs usually account for 30% to 40% of operating costs.

Cathay Pacific Haitong Securities believes that after the double holiday season, oil prices were high and entered the traditional low season, and the airline continued its long-term holiday volume control and price insurance strategy. The bank estimates that in mid-October, air passenger flow fell 5% year on year, passenger occupancy rate remained the same year on year, while bare ticket prices were corrected year on year, and estimated that the price of fuel-containing tickets increased by or more than 10% year over year.

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