Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] Airline stocks in South Korea fell sharply in early trading on June 9, as investor sentiment weakened following a surge in global oil prices above $100 per barrel.

As of 9:43 a.m., shares of T'way Air were down 10.26% (122 won) at 1,067 won on the KOSPI market.

At the same time, Korean Air dropped 7.55% (1,850 won) to 22,650 won.

Other airline-related stocks were also trading lower, including:

Hanjin KAL (-6.47%)

Jeju Air (-5.67%)

Asiana Airlines (-5.11%)

The decline comes after Iran effectively blocked the Strait of Hormuz, a key shipping route through which roughly 20% of global oil shipments pass, triggering a sharp rise in crude prices.

According to Bloomberg, both Brent crude and West Texas Intermediate (WTI) futures surpassed $100 per barrel on June 8 (local time). It marked the first time WTI has traded above $100 since July 2022.

Rising oil prices are expected to significantly increase fuel costs for airlines, dampening investor confidence in the sector.

 

 

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