HK Stock Market Move | Aviation stocks fell across the board. Institutions indicate that the average ticket prices in June compared to last year have turned negative. In July, the domestic fuel surcharge may be reduced by up to 40 yuan.

Aviation stocks are all falling, as of the time of writing, China Eastern Airlines (00670) fell by 5.26% to 3.24 Hong Kong dollars; China Southern Airlines (01055) fell by 5.56% to 3.4 Hong Kong dollars; Air China Limited (00753) fell by 5% to 4.18 Hong Kong dollars; CATHAY PAC AIR (00293) fell by 1.01% to 11.82 Hong Kong dollars. On the news front, on June 18, the National Development and Reform Commission announced that the retail prices of gasoline and diesel will be reduced by 515 yuan and 495 yuan per ton respectively. With the decrease in oil prices, the fuel surcharge may be adjusted accordingly. Flight management company DAST predicts that in July 2026, domestic airline fuel surcharges are expected to be reduced by 20 yuan and 40 yuan respectively. Huatai released a research report stating that in the off-season of June, the revenue level of airlines has fallen slightly. According to data from a flight management company, in the second week of June, the domestic airfare including fuel increased by 16.1%. We calculated that the base fare compared to the previous year has fallen to about -3%. However, after June 11, international oil prices quickly fell, and in July, China's aviation coal ex-factory price is expected to further decrease, alleviating the costs and operational pressures of airlines. In the future, attention will be focused on the pre-sale data for the peak season in July.