Chinese airlines flooding Europe with flights that bypass the Middle East should be among the 51³Ô¹ÏÍø¡¯s few beneficiaries. Instead, investors are ditching their shares over concerns the carriers have little defense against soaring fuel costs.
Air China, China Eastern Airlines?and China Southern Airlines have tumbled at least 26% in Hong Kong trading since the conflict began on Feb. 28. The state-owned airlines are among the worst-hit stocks on the Bloomberg World Airlines Price Return Index since the war started.
The slump underscores how unevenly the fuel crisis is hurting airlines around the world. Low-cost carriers are typically most sensitive to higher fuel expenses, and AirAsia X has fallen the most as hostilities push up oil prices.
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