Asian airline shares fell on Thursday as crude oil prices rose after Russia launched a military offensive on Ukraine, while higher energy prices were set to weigh on their profits, while the pandemic situation remained uncertain. Is.
Many airline stocks sold off sharply amid widespread losses in regional markets, as crowds to protect investors pushed equities down.
Japan Airlines Co. closed down 6.2%, and South Korea’s Asiana Airlines Inc. fell 4.6%. In Hong Kong, China’s three major carriers, Air China Ltd., China Southern Airlines Company and China Eastern Airlines Corp. retreated 3.0%-3.8%. Singapore Airlines Ltd, which is due to release its quarterly results later today, was down 6.8%, its lowest level since December.
Airline stocks mostly underperformed benchmark indices. The Nikkei stock average fell 1.8%, the Kospi fell 2.6%, the Hang Seng index was down 3.2% and the FTSE Straits Times index was down 3.5%.
Front-month futures for Brent crude jumped more than 6% to $103.55 a barrel during Asian trading hours, crossing the $100 a barrel mark for the first time since 2014.
The airline’s chances of recovery have been weighed down by the fast-spreading Omicron variant, which has delayed plans to reopen the border. Analysts have cited higher oil and jet fuel prices as a major near-term headwind for airlines’ profitability due to a potential rise in operating costs and weak profit margins.
This story has been published without modification to the text from a wire agency feed
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