The Smart Marty Sky Dispatch
Asian Airline Stocks Rally as Oil Prices Retreat
By Kwanwoo Jun Asian airline stocks rallied Tuesday as oil prices fell after President Trump played down the risk of an escalation in the Iran war. Prospects of lower jet-fuel costs drove gains in...
Asian airline stocks climbed on Tuesday as oil prices fell following President Trump’s statements downplaying the risk of an escalation in the Iran conflict.
In Korea, shares of Korean Air Lines and its Jin Air affiliate jumped in early trading, with gains reaching as much as 13% and 28% respectively. South Korean low-cost operators Jeju Air and Air Busan also rose, by about 9.8% and 23%.
Chinese carriers advanced in Hong Kong trading, with China Southern Airlines up 8.8%, China Eastern up 8.5%, and Air China up 6.4%. Cathay Pacific of Hong Kong gained 3.2%, while Singapore Airlines rose 2.2%.
The rally followed a closed-door meeting at the White House between President Trump and Qatar’s prime minister, with Trump later suggesting there was positive momentum toward an end to the conflict and stating that an escalation of the campaign against Tehran was not necessary.
Oil prices moved lower in Asian trading, with front-month West Texas Intermediate down 1.4% and Brent crude down 1.2%.
Analysts, including Hana Securities’ Dohyun Ahn, expressed optimism for Korean airlines into 2027, citing expectations of peaking oil prices, cost savings from a stronger won, and a recovery in outbound travel demand.