Airline stocks plunged across the board at the start of trading on the 4th, extending losses from the previous day. With international oil prices surging amid armed clashes between the United States and Iran, disruptions to flight operations on Middle East routes also appeared to weigh on the sector.
As of 10:16 a.m. on the 4th, Hanjin KAL was trading at 123,000 won, down 13,500 won (9.89%) from the previous session on the Korea Exchange.
Jeju Air (5.34%), Asiana Airlines (4.09%), and Korean Air Lines (3.77%) were also falling.
It appeared to be the aftermath of a sharp rise in international oil prices after Iran effectively blockaded the Strait of Hormuz, through which British and U.S. oil tankers pass. In addition, airline stocks were hit by the full suspension of flight operations in the Middle East after Iran launched drones and missiles across the Gulf region.
Major airlines decided to temporarily suspend flights to and from the Middle East. Korean Air Lines extended cancellations for all flights on the Incheon–Dubai route from the 5th to the 8th. Emirates and Qatar Airways also halted operations.