Changes in Hong Kong stocks | Aviation stocks are leading the decline, and uncertainty about the US and Iran situation still exists, and international oil prices soared by more than 30% in the third quarter

The Zhitong Finance App learned that aviation stocks had the highest decline. As of press release, China Eastern Airlines (00670) fell 6.27% to HK$2.465; Air China (00753) fell 5.57% to HK$3.73; China Southern Airlines (01055) fell 4.97% to HK$2.87; and Cathay Pacific (00293) fell 2.1% to HK$14.43.

According to the news, the situation between the US and Iran remains uncertain. Trump said a few days ago that if a satisfactory agreement cannot be reached, he may step up his bombing efforts after the midterm elections are over rather than ending the war. According to another report, the Pentagon is sending a third aircraft carrier battle group and more marine amphibious ships to the Middle East. It is expected that 9,000 to 10,000 additional US troops will be added. The relevant ships, fighter planes, and personnel will arrive by the end of November.

It is worth noting that due to the geographical conflict, international oil prices soared by more than 30% in the third quarter. Higher oil prices will directly impact the cost side of airlines. According to the annual financial reports of major airlines, aviation fuel costs usually account for 30% to 40% of operating costs. In the first half of this year, the revenue of all three major airlines achieved double-digit year-on-year growth, but due to a combination of factors such as high fluctuations in aviation fuel prices, the overall net loss continued to be in a state of loss, with a total net loss of 8.161 billion yuan.