Movement Alert|Air China Rises 4.76% in Regular Trading, Aviation Sector Rebounds After Multi-Day Selloff on Middle East Tensions

Market Focus
06/12

On June 12, Air China rose 4.76% in regular trading, trading at HK$4.38/share, with turnover of HK$36.45 million. The stock staged a broad rebound alongside the aviation sector after several consecutive sessions of heavy selling.

The recovery follows a period of intense pressure triggered by escalating Middle East conflict. The International Air Transport Association recently slashed its global aviation industry net profit forecast from approximately US$41 billion to US$23 billion, nearly halving from the prior year's US$45 billion, citing Iranian hostilities disrupting Middle East routes and surging fuel costs. IATA projected global aviation fuel expenditure would rise to approximately US$350 billion, up nearly 39%, compressing net margins to just 2.0%. Air China's Hong Kong shares had fallen 3.01% on June 10 and a further 3.48% on June 11 before today's bounce.

Within the Airlines sector, the broad rebound is evident: China Eastern Airlines up 5.1%, China Southern Airlines up 3.8%, and Cathay Pacific up 1.8%. Huatai Securities had previously noted the sector represented a left-side opportunity, advising investors to monitor oil price trends for a potential catalyst.

(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.)

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