Aviation stocks in Hong Kong experienced widespread declines. At the time of writing, China Eastern Airlines (00670) fell 3.36% to HK$3.74, while China Southern Airlines (01055) dropped 3.08% to HK$4.09. Air China (00753) also declined, down 2.6% to HK$4.87.

The pressure on the sector is attributed to volatile geopolitical tensions in the Middle East and sustained high international oil prices, with Brent crude trading near $99 per barrel at the time of reporting. Furthermore, since mid-March, multiple domestic airlines have significantly increased fuel surcharges on international routes, with hikes generally exceeding 50%.

Spring Airlines issued a notice stating that for tickets sold from zero hour on April 5, 2026 (based on booking time), domestic route fuel surcharges will be raised, with specific adjustments to be detailed in subsequent announcements.

Guohai Securities expressed the view that by 2026, tightening supply and steadily growing travel demand are expected. Against a backdrop of improving supply-demand dynamics and high passenger load factors, this is projected to support a rebound in low base fares, leading to highly elastic earnings growth for airlines. While the industry currently faces significant cost pressures from the rapid short-term climb in oil prices, certain hedging measures provide some mitigation. The improving supply-demand trend remains intact, and the brokerage is optimistic about the profit recovery elasticity driven by rising airline yields.