Airline stocks showed weakness at the start of trading on July 9, following a surge in global oil prices.
As of 10:26 a.m. KST, Korean Air was trading at 27,600 won, down 600 won (2.13%) from the previous trading day. Asiana Airlines recorded a drop of 220 won (2.91%), trading at 7,330 won. Other major airline stocks, including Jin Air (-0.19%) and Hanjin Kal (-0.88%), also experienced declines.
The drop in airline stocks is attributed to concerns over rising fuel costs due to increasing oil prices, which have dampened investor sentiment. Airlines are considered sensitive to oil price fluctuations; when international oil prices rise, jet fuel costs also increase, leading to higher operational expenses and potential declines in profitability.
On July 8, the United States conducted airstrikes on Iranian military facilities in response to attacks on commercial vessels passing through the Strait of Hormuz. In retaliation, Iran launched missile and drone attacks targeting U.S. military bases in Kuwait and Bahrain, escalating tensions in the Middle East.
As a result, the price of West Texas Intermediate (WTI) crude oil futures for August rose by 4.37% to $73.52 per barrel in overnight trading on the New York Mercantile Exchange. September Brent crude also increased by 5.20%, reaching $78.02 per barrel. These prices are the highest for Brent since June 19 and for WTI since June 22.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.