 |
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.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
