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 aviation stocks across the region.
In South Korea, shares in the country's top flag carrier Korean Air Lines and its budget-airline affiliate Jin Air surged as much as 13% and 28%, respectively, in early trading. Low-cost airlines Jeju Air and Air Busan climbed 9.8% and 23%, respectively.
China's top three carriers also got a boost in Hong Kong trading Tuesday. China Southern Airlines was up 8.8%, on track for its biggest one-day jump in nearly two years. China Eastern rose 8.5% while Air China was 6.4% higher.
Hong Kong-based Cathay Pacific gained 3.2%, while Singapore Airlines was up by 2.2%.
The rally in airline stocks followed Trump's closed-door meeting with Qatar's prime minister at the White House on Monday. Qatar has played a key mediating role in the Iran war.
"We are seeing positive momentum toward an end to this Conflict," Trump said in a Truth Social post after the meeting.
Trump, who had temporarily held off on launching major new attacks on Iran ahead of the U.S. midterm elections, told a White House press briefing that an escalation of the military campaign against Tehran wasn't necessary, saying Israel and U.S. allies in the Gulf were well protected.
Trump's remarks sent oil prices lower in Asian trading on Tuesday, with front-month West Texas Intermediate futures down 1.4% at $85.66 a barrel and Brent crude futures down 1.2% at $91.49 a barrel.
Seoul-based Hana Securities analyst Dohyun Ahn remained upbeat on airlines, especially Korean ones, in the coming year. "In 2027, we expect three factors to converge: peaking oil prices, cost savings from a stronger Korean won and a recovery in outbound travel demand," she said in a research note.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
November 10, 2026 00:29 ET (05:29 GMT)
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