Shares of airline companies are broadly under pressure in Hong Kong trading. Cathay Pacific Airways Ltd (HKG: 00293) fell 2.95% to HK$14.14, China Eastern Airlines Corp Ltd (HKG: 00670) dropped 2.55% to HK$2.67, China Southern Airlines Co Ltd (HKG: 01055) declined 2.27% to HK$3.01, and Air China Ltd (HKG: 00753) slipped 1.84% to HK$3.745.

On the news front, escalating Middle East tensions are once again pushing oil prices higher. Iran announced on Wednesday that it had struck 10 vessels near the Strait of Hormuz in retaliation for the US sinking five Iranian oil tankers. This marks the most substantial exchange of ship attacks between the two nations in the six months since their conflict began, driving Brent crude futures above US$100 per barrel for the first time since late July.

The elevated oil prices directly hit the cost structure of airlines. According to historical financial reports from major carriers, jet fuel expenses typically account for 30% to 40% of total operating costs. In the first half of this year, the three largest Chinese airlines achieved double-digit year-on-year revenue growth, yet they remained in a loss-making position overall due to persistent volatility in jet fuel prices and other compounding factors, with combined net losses reaching RMB 8.161 billion.